Warehouse Capacity Allocation for The Raw Material: Case Study for The Fertilizer Company

Astri, Regita (2019) Warehouse Capacity Allocation for The Raw Material: Case Study for The Fertilizer Company. Other thesis, Institut Teknologi Sepuluh Nopember.

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Abstract

A fertilizer company is now preparing to shift their focus to only producing non-subsidized fertilizers. Therefore, the case company needs to be efficient in each of its production activities, one of which is the internal supply chain activities. The internal supply chain activities are the process of transporting activities to deliver the raw material from the port to the warehouse and from the warehouse to the factory. Currently, the allocation of raw materials is not efficient, this problem happens because there are many fast-moving raw materials allocated in buffer warehouse. The transport cost to and from the buffer warehouse is higher than the transport cost to and from the factory warehouse. Which results in high total transport cost per tonnage delivered. To overcome this problem, the warehouse capacity needs to reallocate, so that the total transport cost incurred will not be as high. By minimizing the total transport cost, the inbound transport time is minimized as well. Therefore, the method that is going to be used to solve this problem is the Discrete Event Simulation (DES), in which the improvement system does not disrupt the existing system and doesn’t cost too much time and money. This research proposed a scenario of new warehouse capacity allocation for raw materials based on minimum warehouse capacity required by each raw material in each warehouse, where the warehouse allocation for fast moving raw material will be placed in the nearest warehouse with the port. The slow-moving raw material will be allocated in buffer warehouse but still with the nearest warehouse to the port. The minimum warehouse capacity required is obtained by the difference of maximum arrival of raw material in port and minimum raw material demand in factory. By using the improved system, it reduces the total transport cost per tonnage delivered by 21.33% which is Rp 28,427.23/ton and shorten the total inbound transportation time per tonnage delivered by 41.66% or equals to 2.87 minutes/ton.

Item Type:	Thesis (Other)
Uncontrolled Keywords:	Discrete Event Simulation, Re-allocation, Warehouse Capacity Allocation
Subjects:	T Technology > T Technology (General) > T57.62 Simulation
Divisions:	Faculty of Industrial Technology > Industrial Engineering > 26201-(S1) Undergraduate Thesis
Depositing User:	Regita Astri
Date Deposited:	22 Jul 2026 04:26
Last Modified:	22 Jul 2026 04:26
URI:	http://repository.its.ac.id/id/eprint/64815

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