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Optimization of Rearrangement of Goods at Warehouse


Optimization of Rearrangement of Goods at Warehouse

Optimization of Rearrangement of Goods at Warehouse - A Warehouse is not just a place to store goods. The warehouse also functions in a strategy to achieve excellence through customer satisfaction. Customers will certainly be happy when the goods they need are sent immediately. 

The amount is sent according to the request from the customer. Improving warehouse performance in supplying goods to customers is an advantage for the company. Orders for 10 items are always initially incomplete.

There are items that cannot be fulfilled. When we asked, the person in charge of the warehouse explained the reason the warehouse was not sufficient to be able to fulfill all customer orders.

After making observations in the warehouse, it was concluded that there was still empty space in the warehouse that could be optimized for placing goods. The problem that arises is how to make calculations to place goods optimally in the warehouse so that the warehouse load capacity increases. 

Is the volume of placement of the goods able to accommodate a certain number of items to serve customers? Or does the management take the decision to invest in building a new warehouse.

The steps made are:

1. Record sales 

The purpose of this action is to determine the pattern of expenditure of goods within a certain period. Information on patterns of expenditure of goods to determine the amount of inventory that needs to be stored in the warehouse. The warehouse is held is to be able to provide services to customers, so all initial actions are based on customer needs.

2. Measuring the volume of each item of goods

To find out the volume of placement of goods needed. And determine the exact place on the location or shelf placement. Besides that, as a basis for consideration of modifying the shelf for placing goods.

3. Determining the volume of each item of goods proportionally

By knowing the pattern of expenditure of goods and their proportions, the warehouse can store goods according to customer needs. Reduce delays in sending or selling indents.

4. Determining the frequency of transactions (per transaction, average, mode, median)

As a basis for determining sales volume coverage and as a basis for determining the minimum amount of stock required to serve customers.

5. Determine the amount of sales volume coverage that can be served

Obtain a level of confidence that most transactions can be served by the warehouse.

6. Estimating the lead time for procurement of goods

To find out how long it will take for the goods to be ordered until the goods arrive at the warehouse. This information is taken into consideration in determining the minimum stock that needs to be provided in the warehouse and reducing the activity of shipping or ordering goods to suppliers (reducing material handling costs)

7. Determining the minimum amount of stock that needs to exist

.As a basis for serving customers and minimizing the incidence of empty stock in the warehouse.

8. Measure the volume of goods placement in the warehouse (on the floor and shelf of goods placement).

Measure warehouse capacity so that management can be informed about decisions to modify the warehouse or add new warehouse investment.

9. Set the maximum amount of stock that can be stored in the warehouse.

The maximum number of items for each item is determined to make it easier for the person in charge of the warehouse in determining the number of items that need to be ordered. Special orders from salesmen are not included in this calculation. The number of goods orders should be based on how many items will be stored in the warehouse and the planned order orders from the salesman.

10. Modify the placement rack design according to the number and items of goods

Modifications need to be made so that the shelf placement capacity can be increased optimally. In designing the shelf, it requires information on the volume of items to be placed and how many should be placed.

11. Measuring the utilization of the placement of goods

By measuring the utilization of goods storage, it will be obtained information on the volume wasted after placing the goods. Calculations to measure this condition are needed so that the storage capacity of goods in the warehouse can be optimized.

12. Propose shelf design and arrangement of goods in the warehouse

Providing basic considerations for management in making decisions to invest in new warehouses or rearranging warehouse goods by slightly modifying the location of where the goods are needed.

There was an increase in the volume of goods that could be placed up to 36%. Therefore, the management agreed to redesign the placement location and the shelf where the goods were placed in order to meet customer requirements.


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