Cubic Capacity (CC)= floor area ×average stacking height
Here, the average stacking height depends upon factors like floor load criteria, safety regulations etc. Cubic capacity can also be calculated for bins and racks.
It may not be feasible to use complete space available in warehouse for practical reasons like size difference among goods, stacking problem to permissible height etc. In order to find efficiency, capacity utilization of warehouse is calculating i.e.
Based on utilization calculation, certain measure can be taken to improve warehouse space by better stacking to handle size variation, timely maintenance of broken space, use of IT system to improve visibility etc.
Suppose the floor space of warehouse is 100 sq ft and allowable height is 10 ft, then the cubic capacity of warehouse will be 1000 cubic ft. If the size of boxes to be stored is 2 cubic ft, then the warehouse will be able to store maximum of 500 boxes.