What’s the difference between Active Storage and Extended Storage?
Active storage is for basic inventory replenishment, and is used to provide sufficient inventory to meet the periodical demands of the service area. It depends on the capability to achieve transportation or handling economies of scale. Extended Storage is when inventory is held for periods in excess of that required for normal replenishment of customer stocks. It uses materials handling processes and technologies that focus on maximum space utilization with minimal need for quick access. Some reasons for extended storage are erratic demand times, product conditioning, speculative purchases, and discounts.