A system study on the warehousing department Parco-QC of Gant Diamond Corporation

• Main Authors: Ongtiapco, Jonathan, Saradpon, Alan
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12003
• Institution: De La Salle University

Executive Summary. Gant Diamond Corporation composes of 3 branches of supermarkets that serve quality products and quality service to customers for more than 10 years. Among the 3 branches of the company, the group focuses on the Parco-QC branch. The group performed a system study on the warehousing department of the Parco-QC of Gant Diamond Corporation. After weeks of observation, interviews and data collection, the group discovered that for the year 1998, the company incurred a handling cost of P 21,364.08 due to bad orders. Though the company never loses this amount, opportunity cost is attributed to it. In pointing out the causes and effects of the problem, the group made use the fish-bone diagram. After further analysis and careful deliberation on the possible causes of the problem, the group found out that the causes are the lack of inventory management that accounts for 34.32% of expired goods, lack of pest control that accounts for 16.38%, and lack of material handling equipment the accounts for 49.32% of the total bad orders. To solve the problem, the group formulated 3 proposed solutions to address the three causes that contribute to the problem. The first solution made use of the Economic Order Quantity formula and Reorder Point to address the expired goods. The second solution employs basic housekeeping actions and pest controls to eliminate the damages of goods due to pest. The third proposed solution needed the installation of a ramp that aids in the transportation of materials up to the second floor of the warehouse to minimize the damages due to improper material handling. The implementation of the proposed system incurs cost and benefits for the company. Since the investment that will be used is minimal, the payback period of the investment is relatively small. The Net Present Value of the Proposed System is P 2,285.62.