The Efficiency Enhancement of Warehouse Management using ABC and Forecasting Technique: A Case Study of Storage System
Keywords:
Warehouse, ABC Analysis, ForecastingAbstract
This research aims to improve the efficiency of warehouse management system. For the warehouse in this case study, there are two main problems which are about long pick up distance and long pick up time affecting to the efficiency of its warehouse management system. To cope with these problems, The ABC technique is firstly applied to group all goods in this warehouse base on the turnover rate of goods. Next, the storage areas of goods, especially group A goods which have high turnover rate, are re-located. The improving results show that the value of pick up distance and pick up time of all goods in warehouse are reduced about 70.69% and 65.97% respectively. To maintain the good efficiency of its warehouse management system in the future, three forecasting methods of the moving average method, the weighted moving average method, and the exponential smoothing method are trial applied with group A goods. The calculating results show that the exponential smoothing method is the proper forecasting method with 66.67% of forecasting power at 23.64% of mean absolute percentage error.
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