Improving efficiency on warehouse management: a case study of beverage company’s distribution center

Sirawadee Arunyanart

Department of Industrial Engineering, Faculty of Engineering, Khon Kaen University, Khon Kaen, Thailand

Piyanuch Tangkitipanusawat

Department of Marketing and Management, The Bay Samui Co., Ltd., Surat Thani, Thailand

Kazuho Yoshimoto

Department of Business Design and Management, Graduate School of Creative Science and Engineering, Waseda University, Tokyo, Japan

DOI: https://doi.org/10.14456/apst.2019.29

Keywords: Warehouse layout model ABC analysis Safety stock Storage assignment Beverage industry

Abstract

Inventory and warehouse management plays a key role in the performance and effectiveness of every company that carries any products. Sunk costs are inevitable when keeping a number of products to fulfill customers’ needs, while storing items with less flexibility to satisfy customers’unforeseen demands may upset business opportunities. Therefore, the utmost priorities are to manage a storage of stock inventory efficiently. The purpose of this study is to improve the efficiency on warehouse management in one of the distribution centers of a beverage company in Thailand. A number of methods have been applied to find optimal safety stock, maximize space utilization, and revise pattern of storage locations by using a Warehouse Layout Model with an ABC analysis technique to place the products that have more activities to stay effectively accessible. The results indicated a 59.46% reduction of the company’s safety stock, a 13.73% increase in storage volume which created capacity for 365 additional pallets, and a roughly 42.32% decrease for moving distance of goods in the distribution center.

How to Cite

Arunyanart, S., Tangkitipanusawat, P., & Yoshimoto, K. (2019). Improving efficiency on warehouse management: a case study of beverage company’s distribution center. Asia-Pacific Journal of Science and Technology, 24(03), APST–24. https://doi.org/10.14456/apst.2019.29

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