DETERMINING WAREHOUSE LAYOUT DESIGN TO MINIMIZE MATERIAL HANDLING COSTS WITH SYSTEMATIC LAYOUT PLANNING METHOD

Abstract

PT. Millennium Pharmacon International is a pharmaceutical wholesaler with 32 branches in Indonesia and 1 central warehouse. PT. Millennium Pharmacon International has problems such as the high cost of material handling due to the long distance between areas and in some situations in the distribution area there is a buildup of goods to the point of having to use a storage area with a temperature below 25 degrees Celsius. Data collection techniques used are direct observations and interviews with warehouse managers. With the Systematic Layout Planning (SLP) method, a warehouse layout design can be produced that can help solve warehouse layout problems, minimize material handling costs, consider area proximity relationships, analyze space requirements and is a simple and easy method to implement. The findings of the research show that the resulting proposal can save material handling costs as much as 34% or Rp. 5,213,733 per week. And the analysis of room requirements in the drug storage area with temperatures below 25 degrees Celsius found that the room should be reduced in size so that it can be used for the distribution area and can save air conditioning costs as much as 85% or Rp. 3,746,995 per month.