A new facility layout, storage, and material handling plan with warehouse inventory monitoring integration for SB Corporation

• Main Authors: Cordero, Sirah Joie B., Cruz, Dianne Christine P., Tan, Jasmine Claire G.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Warehouses > Management; Business logistics > Philippines; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10495
• Institution: De La Salle University

The SB Group of companies grew from a small retail shop that started in 1958, and is responsible for the various shopping malls in the country. Due to the size of the company and the number of sites that they have for their malls, the company has been using a central warehouse to contain all their construction materials and fixtures for the malls construction and renovation. The current contract of the central warehouse located in Quiapo is about to expire and the company has found a new lot where a new central warehouse would be built. The new warehouse would need a new facility plan because the shape of the lot is different from the current one. The different parts of the Central Warehouse system was investigate that included the layout, material handling system, storage location of items, safety standards, the processes being done in the warehouse, and the inventory management of the items in the warehouse to determine whether or not the current processes could be adopted or not. After analysing the processes being done in the central warehouse using the FMEA, interviewing the concerned personnel, documenting the current layout, material handling system and safety of the central warehouse, several issues were discovered that were concerned with the processes, space availability, inventory monitoring, and material handling of the items in the central warehouse and these issues resulted into loss of items, damages, delay in project completion, additional salary expenses, and the cost of rushed item deliveries all of which amounted to Php6,544,814.70. Several alternatives solutions were presented to solve the different issues that were discovered and these include the alternatives in the warehouse layout, material handling equipment, inventory monitoring application, and processes. The final solution was chosen after evaluating all of the alternatives using KTDA for the processes, Factory PLAN software for the optimal layout, and weighted factor comparison for the material handling equipment using the different criteria based on the nature of the issue and corresponding solution. The solutions presented cost a maximum of Php1,864,479.00 for the initial one-time cost and Php30,730.00 for the recurring cost. That would give the company a net income of Php 1,932,714. 14 per year and a payback period of 11.58 months if it were to be at least 30% efficient after the implementing the proposed solutions.