Abstract:
DB Schenker, a leading logistics company, collaborates with IBM, one of leading computer hardware and software manufacturer, to control the inventory of the warehouse and the logistic activity. The demand that keeps increasing every year gradually obliges IBM and DB Schenker to expand their warehouse space, and yet they did not have the space expanded until recently. In regard to lack of space while the demand keeps increasing, some materials are stored in the hallway and aisles. Thus, relocating the office and the warehouse to new location that is more eligible should be done in order to optimize the business process of the company. The procedure in relocating the office and the warehouse starts with determining IBM standards by interviewing the representative of IBM. The results will be analyzed with Analytical Hierarchy Process to find the new location. The next procedure after determining the location is planning the layout of the office and the warehouse with Automatic Layout Design Program (ALDEP Algorithm). The storage layout planning will also be applied in the warehouse to determine the new travel of distance. By using the storage layout planning, the reduction of travel distance between old and new layout generates an improvement by 55.7%.
