Determining Order-Picking Strategy for Packaging Materials Warehouse of a Personal Care Manufacturer Using Discrete Event Simulation Approach

Nurirfan, Aiko Sinclairy (2023) Determining Order-Picking Strategy for Packaging Materials Warehouse of a Personal Care Manufacturer Using Discrete Event Simulation Approach. Other thesis, Institut Teknologi Sepuluh Nopember.

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Abstract

Order-picking is the most significant process in warehouse operations that contributes 65% of total warehouse costs. This study uses a case study of a packaging materials (PM) warehouse of a personal goods manufacturing company. The warehouse manages and supplies packaging materials for two production facilities, one for decorative items, and the other for liquid items. The warehouse is facing a problem in that it could not maintain its throughput rate performance to 90% as a target. In the attempt to increase the warehouse’s throughput rate, two alternative scenarios are generated and evaluated using discrete-event simulation approach. In scenario 1 storage policy of the warehouse is changed to the shared storage policy, considering the turnover rate classification. Implementation of scenario 1 requires an initial investment cost of Rp14.200.000. The statistical test result of scenario 1 shows no significant improvement. It is found that minimizing material handling distance has no significant impact on the decrease of delay in the warehouse’s order-picking process. In scenario 2, two additional order-picking operators are added to the system without changing the storage policy. Implementation of scenario 2 requires an initial investment cost of Rp6.120.000 and a recurring cost of Rp8.400.000 monthly. The statistical test result of scenario 2 shows significant improvement with a throughput rate increase from 80.08% in scenario 0 to 96.33% in scenario 2. As the main objective is to improve the warehouse’s throughput rate, it ismrecommended for the warehouse to implement scenario 2 by investing in two additional hand pallets and hiring two additional operators for the warehouse’s order-picking process.
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Order-picking adalah proses paling signifikan dalam operasi gudang yang menyumbang 65% dari total biaya gudang. Penelitian ini menggunakan studi kasus gudang bahan pengemas (PM) sebuah perusahaan manufaktur produk personal goods. Gudang PM mengelola dan memasok bahan pengemasan untuk dua fasilitas produksi, satu untuk barang dekoratif, dan yang lainnya untuk barang cair. Gudang menghadapi masalah karena tidak dapat mempertahankan kinerja throughput rate hingga 90% sesuai target. Dalam upaya untuk meningkatkan throughput rate gudang, dua skenario alternatif dihasilkan dan dievaluasi menggunakan pendekatan discrete-event simulation. Pada skenario 1 kebijakan penyimpanan gudang diubah menjadi shared storage policy, dengan mempertimbangkan klasifikasi tingkat perputaran. Pelaksanaan skenario 1 membutuhkan biaya investasi awal sebesar Rp14.200.000. Hasil uji statistik skenario 1 tidak menunjukkan peningkatan yang signifikan. Ditemukan bahwa meminimalkan jarak material handling tidak berdampak signifikan terhadap penurunan delay proses order-picking di gudang. Dalam skenario 2, dua operator pengambilan pesanan tambahan ditambahkan ke sistem tanpa mengubah kebijakan penyimpanan. Implementasi skenario 2 membutuhkan biaya investasi awal sebesar Rp6.120.000 dan biaya berulang sebesar Rp8.400.000 per bulan. Hasil uji statistik skenario 2 menunjukkan peningkatan yang signifikan dengan peningkatan throughput rate dari 80,08% pada skenario 0 menjadi 96,33% pada skenario 2. Karena tujuan utamanya adalah untuk meningkatkan throughput rate gudang, disarankan agar gudang menerapkan skenario 2 dengan berinvestasi dalam dua palet tangan tambahan dan mempekerjakan dua operator tambahan untuk proses order-picking di gudang.

Item Type:	Thesis (Other)
Uncontrolled Keywords:	Discrete-Event Simulation, Order-Picking, Packaging Materials Warehouse, Throughput Rate
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD38.5 Business logistics--Cost effectiveness. Supply chain management. ERP T Technology > T Technology (General) > T57.62 Simulation
Divisions:	Faculty of Industrial Technology and Systems Engineering (INDSYS) > Industrial Engineering > 26201-(S1) Undergraduate Thesis
Depositing User:	Aiko Sinclairy Nurirfan
Date Deposited:	09 Feb 2023 02:23
Last Modified:	09 Feb 2023 02:23
URI:	http://repository.its.ac.id/id/eprint/96647

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