Proceedings of the 19th International Symposium on Management (INSYMA 2022)

Shelf Allocation Redesign and Warehouse Management System Improvement to Optimize Warehouse Material Flow in Oleo Chemical Industry Business

Authors
Herbert Ray Prasetya1, *, Nazarruddin1, Sugiharto Pujangkoro1
1University of North Sumatra, Medan, Indonesia
*Corresponding author. Email: hrp060396@gmail.com
Corresponding Author
Herbert Ray Prasetya
Available Online 5 December 2022.
DOI
10.2991/978-94-6463-008-4_140How to use a DOI?
Keywords
Warehouse management; Shelf allocation; Product flow; Warehouse management system
Abstract

The increase in production results in an increase in the flow of material in the warehouse, while this increase does not consider the condition of the warehouse. The increase in production and the number of erratic shipments of goods is caused by external factors such as fluctuations in demand and availability of containers that cannot be controlled that will result in a bottleneck in the warehouse. The purpose of this study is to redesign the allocation of shelves and improve technology in the warehouse management system. The research method uses a material flow simulation model in the warehouse. The simulation validation and manual calculations results show that the rack simulation for dove and soap required 4,018 pallet positions and flaking drumming simulations required 1,815 pallet positions. Meanwhile, in actual conditions, the rack for dove and soap is allocated 2,834 pallet positions and 2,400 pallet positions for flaking and bagging. Class division using the ABC Classification method is carried out so that Class A, which is a group of Fast-Moving items, is brought closer to the receiving department, Class B, which is a group of Slow-Moving items, is placed after the placement of class A, then class C, which is also a group of Slow-Moving items, is placed after class B. Moreover, the results of slow-moving product optimization are seen from a reduction of 32,608 pcs from 581,096 pcs in July 2021 to 525,281 pcs in December 2021, and a reduction of $92,485 from $774,644 in July 2021 to $620,292 in December in the slow-moving value.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 19th International Symposium on Management (INSYMA 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
5 December 2022
ISBN
10.2991/978-94-6463-008-4_140
ISSN
2352-5428
DOI
10.2991/978-94-6463-008-4_140How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Herbert Ray Prasetya
AU  - Nazarruddin
AU  - Sugiharto Pujangkoro
PY  - 2022
DA  - 2022/12/05
TI  - Shelf Allocation Redesign and Warehouse Management System Improvement to Optimize Warehouse Material Flow in Oleo Chemical Industry Business
BT  - Proceedings of the 19th International Symposium on Management (INSYMA 2022)
PB  - Atlantis Press
SP  - 1135
EP  - 1145
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-008-4_140
DO  - 10.2991/978-94-6463-008-4_140
ID  - Prasetya2022
ER  -