PROPOSING DYNAMIC WAREHOUSE LAYOUT AT POLYMER MANUFACTURING COMPANY, CIBITUNG

Abstract

A warehouse is a place used for the storage or accumulation of goods. It may also be defined as an establishment that assumes responsibility for the safe custody of goods. The common issue related to storage layout problem is the dynamic nature of customer demand orders. As time goes by, the demand of PT. X is increasing. But increasing demand is not followed by the increasing of warehouse capacity. In addition, as a supplier company, every year their customers will keep changing. The aim of this study is creating a layout to face the dynamic demand. The solution for this problem is to create dynamic layout for 5 years ahead and the new layout that can accommodate future demand with minimizing the material handling cost. The stock location for every year are addressed using storage layout planning based on principle of popularity items. Result indicates that material handling cost reduced 36% from IDR 86,492.27 to IDR 39,916.76 and increasing warehouse capacity from 2339 pallets to 5950 pallets or by 44%. With this saving, PT X can meet the breakeven point for the re-layout cost within 2.1 years and can be used for 5 years ahead.