A systems study on the inbound to outbound warehouse operations of Deejay Management & Trading Services Co.

• Main Authors: Bangayan, Rivkin Josef Y., Chua, Ryan Stacey K., Ng, Andrea Stacey P.
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: Warehouses—Management; Warehouses—Inventory control; Root cause analysis; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18621
• Institution: De La Salle University

A Systems Study on the Warehousing Operations of Deejay Management and Trading Services Co. was conducted. Deejay Management and Trading Services Co. is a company that has been providing third-party warehousing services to Pepsi Cola Products Philippines Inc. for over 9 years. The company's aim is to provide the highest quality warehouse services through minimal breakages and pilferages, and as well as accommodating the maximum number of stocks supplied by the client. The study focuses on the warehousing operation activities of the company which include the inbound to storage, inventory count, and booking to outbound processes with a study period of 1 year beginning on July 2016 up to June 2017. The company's problems were evaluated using WOT-SURG Analysis, where the main problem is that the company is incurring inventory variance that amounts to Php1,002,544. With the discovered problem, it was analyzed further using a Why-Why Diagram to determine the root causes of the problem. The root causes found were pilferages incurred by the trucker in the picking process and the errors incurred by the checkers in counting the goods being loaded in the trucks, and the undeclared breakages also incurred by the trucker during the picking, loading, and unloading process. With these identified root causes, multiple alternatives were evaluated in order to come up with the best proposed system to help minimize inventory variances in the company's daily operations. The proposed system includes combined alternatives to obtain improved results including solutions like reallocation of workers, implementation of different policies, revisions in the warehouse processes, changes in the layout, and improving overall security in the warehouse. A one-month trial was done in order to test the effectivity of the proposed system which showed a significant difference in terms of lessening inventory variance, higher worker utilization, and improving warehouse efficiency.