A system study on the warehouse department of Hang Ten, Philippines

• Main Authors: Chua, Bernadette, Clarin, Catherine, Garcia, Geoffrey
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12007
• Institution: De La Salle University

Executive Summary. Hang Ten Phils. began importing goods in 1997 from a Mother Company in Taiwan to ensure the same standards of products all over the world. It is also in this year that boutiques were established in malls all over Metro Manila and in some provinces. The study is concentrated in the Warehouse Department of Hang Ten Phils. and will also include the ordering system of the Merchandising Department. The study is also focused on the 72 styles of shirts for the period of April 1998 to March 1999. The reason for this is that majority of the sales of Hang Ten Phils. are concentrated on shirts. From the study done, the group discovered that the Managers are ineffective in their ordering system, primarily on the computation of order quantity. This forces them to have an 8.83% excess inventory, which incurs a total cost of Php 3,910,080.70 for the period concerned (exclusive of the Php 15,840,000 annual custom tax). The problem was arrived using WOT-SURG Analysis and the true causes were arrived using an Ishikawa or Cause and Effect Diagram. In order to alleviate the problem of excess inventory, the group formulated an ordering system that would have a more effective forecast on sales (Seasonal Forecast with Seasonal Indices or Relatives) and computation of order quantity with the use MS-Excel. The implementation cost is expected to be Php 18,250, which would be incurred as a one time cost only in the first year. This will include overtime costs, snack costs, and training material costs. The expected savings per year according to the cash flow analysis would be PHP 725,849.51. It is also expected that the implementation plan would cover about 11 months, which includes Presentation to the management, Formulation of implementation plan with the consideration of the management's point of view, Actual implementation, and Evaluation and Adjustments. It is expected that the total cost, which include only basic holding costs, would be minimized below Php 10,000,000 and excess inventory be maintained close to the tolerable level of 5%. This would bring additional savings for the company, which can be used to pursue more opportunities in the future.