The efficiency of warehouses has a large impact on the company costs. Storage- and handling costs make up a significant part of the total logistic costs for companies [4]. A large part of the handling costs consists of order picking which can consist of up to 50% of transports between different places of the warehouse. This makes warehouse layout an important aspect in improving the efficiency of the warehouse and in keeping the companies competitiveness [4]. A lot of work-related injuries occurs in warehouses and the consequences can be very serious and expensive [8]. An inadequate warehouse layout can increase the risk for injuries and there are many aspects regarding the working environment that must be considered when developing a layout [9]. The warehouse layout has a great impact on both efficiency and working environment safety. There is relatively little research about structured approaches for developing warehouse layouts and there is a deficit of studies regarding working environment despite its great importance [2]. The purpose of this study is to produce a process for development of warehouse layouts with regards to efficiency and working environment safety. The purpose has been divided into two question formulations:

1. Which factors regarding warehouse layout affects efficiency and working environment safety?

2. How can the factors regarding warehouse layout be impacted to improve the efficiency and working environment safety?

The study has been divided into four phases. Phase one was initiated through a pre-study to obtain a thorough understanding of the field. The phase consisted of an interview, observations and constitutes a base for the literary review that is initiated in the next coming phase. Phase two consisted of a literary review that resulted in several factors and improvement measures. Phase three included a case study and a benchmarking. The factors were examined during the case study at the company Svenska Hem. The benchmarking was done through an interview with the purpose of identifying additional factors. The process PALOS was developed in phase four from the theory and empirical data with the method analytical conceptual research.

In the chapter analyse the results to the question formulations are presented. The first question is answered through a table with factors and their relation to efficiency and working environment safety. Most of the factors have relations to more than one of the elements. The second question is answered through improvement measures that impacts the factors. The purpose fulfilment is answered with the process PALOS (Process for development of warehouse layout regarding efficiency and working environment safety). The process has six general steps with different sub steps. The process can be done once or used periodically. The process can be used both for improving existing warehouses or potentially for designing a new.

Companies that use or needs a warehouse can use the process PALOS and the underlying knowledge to potentially reach an improved efficiency and hence reduce their warehousing costs and improve the delivery precision which in turn leads to increased competitiveness. The working environment can also potentially be improved from the use of the process PALOS. A systematic work procedure for development of warehouse layout has been produced and the study acts to reduce the imbalance in research about warehouse operations by examining working environment safety.