Main Article Content
Inventory and warehouse management plays a key role in the performance and effectiveness of every company that carries any products. Sunk costs are inevitable when keeping a number of products to fulfill customers’ needs, while storing items with less flexibility to satisfy customers’unforeseen demands may upset business opportunities. Therefore, the utmost priorities are to manage a storage of stock inventory efficiently. The purpose of this study is to improve the efficiency on warehouse management in one of the distribution centers of a beverage company in Thailand. A number of methods have been applied to find optimal safety stock, maximize space utilization, and revise pattern of storage locations by using a Warehouse Layout Model with an ABC analysis technique to place the products that have more activities to stay effectively accessible. The results indicated a 59.46% reduction of the company’s safety stock, a 13.73% increase in storage volume which created capacity for 365 additional pallets, and a roughly 42.32% decrease for moving distance of goods in the distribution center.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
 CGMA. Lean management techniques: 10 best practice checklists [Internet]. 2015 [cited 2017 Nov 30]. Available from:https://www.cgma.org/Resources/Tools/DownloadableDocuments/lean-management-techniques.pdf
 Wilson L. How to implement lean manufacturing. New York: McGraw-Hill; 2002.
 Van den Berg JP, Zijm WHM. Models for warehouse management: Classification and examples. Int J Prod Econ. 1999;59:519-528.
 Heskett JL. Cube-per-order index-a key to warehouse stock location: Transportation and Distribution Management. 1963;3(1):27-31.
 Schuur PC. The worst-case performance of the cube per order index slotting strategy is infinitely bad-A technical note. Int J Prod Econ. 2015;170:801–804.
 Yu Y, Koster R, Guo X. Class based storage with a finite number of items: Using more classes is not always better. Prod Oper Manag. 2015;28(8):1235-1247.
 Frazelle EA, Sharp GP. Correlated assignment strategy can improve any order-picking operation. Ind Eng. 1989;21(4),33-37.
 Petersen CG, Aase G, Heiser DR. Improving order picking performance through the implementation of class based storage. Int J Phys Distr Log. 2004;34(7):534-544.
 Witvorapong N. Alcohol trade in a boundless world. Bangkok: Duen Tula Publishing House; 2015. (in Thai)
 Hill T. Operation management. 2nd ed. China: Palgrave Macmillan; 2005.
 Ballou RH. Business logistics/supply chain management. 5th ed. New Jersey: Pearson Prentice Hal; 2004.
 Stock JR, Lambert DM. Strategic logistics management. 4th ed., New York: McGraw-Hill; 2001.
 Tompkins JA, Smith JD. The warehouse management handbook. 2nd ed. Raleigh, NC: Tompkins Press; 1998.
 Dilworth JB. Operation management: design, planning, and control for manufacturing and services. International ed. Singapore: McGraw-Hill; 1992.
 APICS Magazine. Crack the code: understanding safety stock and mastering its equations [Internet]. 2011 [cited 2017 Dec 3]. Available from: https://web.mit.edu/2.810/www/files/readings/King_SafetyStock.pdf
 Krajewski LJ, Ritzman LP. Operation management strategy and analysis. 5th ed. Addison-Wesley; 2000.
 Tompkins JA, White JA, Bozer YA, Tanchoco JMA. Facilities planning. 4th ed. USA: John Wiley & Sons; 2010.