INTRODUCTION
The warehouse has been viewed in many different ways and has many definitions. Cavinato (1990) views the
warehouse as the place to hold, move, sort, transfer and change the form of inventories. Whereas, Spencer (1993) argues
that the warehouse is a production system. He states that the warehouse is a combination of single operations,
culminating at the end as a whole process. Gunasekaran et al. (1999) believe that the warehouse is a combination of both
physical processes of material handling and methodologies such as inventory control and production control. Warehouse
performance has been measured with each indicator separately, however, this traditional measurement has some
limitations that it cannot compare the performance over time regarding the unknown relative values between indicators
(McGinnis et al., 2002). Such limitations have been overcome by the work of Khemavuk and Hasan (2010), a model for
measuring warehouse performance was developed with Structural Equation Modelling (SEM) technique and analogy
based approach. The results from the study show that the SEM model is able to measure the warehouse performance with
a MMRE value of 2.99%. Furthermore, the SEM model was developed using an analogy based approach. This
development allows the company to retrieve information about other warehouses from a dataset in order to compare it
with the company’s information.