INCREASING EFFICIENCY OF WAREHOUSE LAYOUT: A CASE STUDY OF ABC COMPANY

Abstract

                    The objectives of the study were to study the problems and causes of delayed picking in the warehouse of the case study's company and to increase the efficiency of warehouse management by a collection of basic information on the monthly import and sale of goods for the whole year 2021. This study used a fishbone diagram to find the root cause, managed inventory using ABC analysis, and changed the warehouse layout.

            The fishbone diagram analysis revealed the problem that the employees spent too much time picking up the products. The research changed the warehouse layout by starting from the analysis of the products using ABC analysis. It was found that there were 2 types in group A, 1 type in group B, and 7 types in group C, respectively. This research increased the warehousing space by 60 square meters from the original area of 1,015 square meters to 1,075 square meters or expanded the area by 5.9%. Furthermore, this research increased a door on another side of the warehouse to reduce the picking time by around 50%. Finally, the research increased the warehouse area by 1,125 square meters, increasing the slot of pallet storage from 808 pallets to 2,480 pallets, which could increase approximately triple the original size. In the operation process, this research selected a forklift whose size should not exceed 1.3 meters. The researcher applied a visual control by setting the signboard to show each pallet's status in each product type. Red color represented group A products, yellow color represented group B products, and pink color represented group C products for the improvement analysis of the warehouse area.