A system for the warehouse & traffic department of Rohm & HAAS Philippines, Inc.

• Main Author: Abacan, Liza Raquel T.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/1629
• Institution: De La Salle University

This study is concerned with the Warehousing & Traffic Department of Rohm and Haas Philippines, Inc. The problem being addressed is the 123% days excess in monomers inventory that is currently being experienced by the company. It is a serious and urgent problem because carrying costs increased to PHP 19.642 million that could have been the savings for the company had the inventory level been kept according to the system's objectives. This weakness should be addressed right away. The system management and the writer believe that they have significant time and resources to solve this problem. The problem has the following specifications: The monomers that are the only raw materials for Acrylic Emulsion imported from the U.S. had the highest observed excess. This problem had been observed since 1990, became dormant for the next two years and resurfaced again in 1993 up to the current year. The excess in monomers inventory comprises 49% of the average increase in the holding costs. Further analysis traced the cause to an inaccurate inventory information in the business plan that the system used to schedule RM shipments, production schedules, and sales orders. The inaccuracy was traced to fluctuating demand and the distant source of monomer supply. Due to these factors, the warehouse becomes inflexible, unable to react immediately to market changes. The proposed solution is to therefore source monomers from nearer sources like Japan or Singapore.