A system study on the warehouse and inventory management of Pepsi-Cola Products Philippines, Inc.

• Main Authors: Cruz-am, Francine Joanne, Lim, Audrey Bernice, Tan, Aldryn Nygel, Seva, Rosemary, panel chair
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: System analysis; System engineering; Pepsi-Cola Products Philippines Inc
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9136
• Institution: De La Salle University

A system study was conducted on the warehouse and inventory management of Pepsi Cola Products Philippines, Inc. PCPPI is a company that manufactures, sells, and distributes softdrinks in the Philippines. The study focuses on the inbound and outbound operations, warehousing, and inventory system of the three warehouses in Muntinlupa. The data used in this study is from January - December 2016. Based on the company's specific goals and key perfromance indicators, the warehouses were evaluated to determine its strengths, weaknesses, opportunities and threats. After which, a WOT-SURG analysis was conducted to determine the problem with the highest priority. It was determined that PCPPI's problem is the average order fill rate for modern trade operations in 2016 is 73.44%, which deviates from the target by 16.56%, incurring an opportunity cost of Php26,226,992.49. The causes of the problems were identified using the why why analysis. It was found tha the root causes of the problem were delivery time being affected by truck ban and traffic, 15% of the products stored were slow moving, wrong product placement, and wrong recorded product quantity. Possible solutions to reduce opportunity lost were generated and assessed through a Kepner-Tregoe decision analysis, after which six alternatives were chosen. Alternative solutions incorporated in the proposed system included renting addtional 8-bay Hino FGIJ trucks, standardizing truck delivery scheduling and routing, restructuring, stock placement to suit retail habits of the modern trade operations, introducing a monthly forecasting function in the warehouse, creating a product placement form for forklift operators and implementing inventory updates every shift and improve inventory visibility by using a web-based spreadsheet. Each solution was discussed in the proposed system with the objective to reduce opportunity loss of the warehouse and reach the order fill rate of 90%. With the implementation of the proposed solutions, the number of delivered pallets per day was increased by 93%, therefore reaching the standadrd order fillrate of 90%. Furthermore, the company is expected to reduce its opportunity loss by Ph17,039,680 as this is the expected profit the company gains with the implementation of the proposed system. Payback period of the proposed system is also expected after 0.5 days.