Layout Design and Storage Relocation for Warehouse Efficiency Improvement in Warehouse: A Case Study of a Public Hospital
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Abstract
The objective of this study is to improve the warehouse performance by redesigning the warehouse layout and re-location for storing the odds and end in a public hospital. As surveyed, the background problem reveals that there is an ineffective storage policy for each product group, resulting in unvalued time-consuming and unproductive traveling in picking processes. To overcome this issue, this research gathered data on SKUs’ picking frequency in total 244 items, categorized by three product groups, namely mold, odds and end, and office equipment. For the analysis, two main approaches: ABC class-based layout and storage relocation assignment model are applied for finding the appropriate warehouse layout and optimal storage location. The result from a comparative analysis of performance evaluations shows that the optimal layout derived by picking frequencies with considering of items’ prioritization is the best design. With the new layout, the case gain benefits of better efficiency in terms of the shortest travel distance reduction from 81,950.6 to 77,591.7 meters a year (account for 5% of reduction) and the average time of picking processes deducts from 34.2 to 32.13 hours per year.
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