What is the difference between gross and net storage primarily related to?

The difference between gross and net storage is primarily related to the physical space utilized within a storage area, including how aisles are incorporated into that space. Gross storage refers to the total volume available in a warehouse or storage area, accounting for all the available cubic footage, including the areas taken up by aisles, shelving, and any other infrastructure. On the other hand, net storage is the volume of space that is actually available for storing items after accounting for aisles and any other non-storage spaces.

The concept is crucial in logistics and inventory management because an efficient design of storage space maximizes net storage, ensuring that the actual inventory capacity is optimized. This understanding aids in planning and organizing storage facilities to enhance their operational efficiency, allowing for more effective storage and retrieval processes.