Open AccessDesign of warehouse model with dedicated policy to minimize total travel costs: a case study in a construction workshop
Author(s) -
Ade Irman,
Yusraini Muharni,
Andri Yusuf
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/909/1/012088
Subject(s) - warehouse , spare part , total cost , profit (economics) , operations research , computer science , integer programming , finished good , holding cost , operations management , manufacturing engineering , industrial engineering , business , engineering , economics , marketing , production (economics) , accounting , algorithm , macroeconomics , microeconomics
Warehousing is one of the many important activities in a company. One of the important things in managing the warehouse is how to store finished or semi-finished goods, raw materials, spare parts, equipment, or other goods in the right location to minimize total travel costs inside the workshop. In a workshop construction company usually uses a raw material in a big size and the cost of moving a big size usually need a high cost also. Dedicated storage policy becomes an option to make a model where the material should be store inside the warehouse. A mathematical model as an Integer Linear Programming problem used to model the case problem. LINGO 17 used to solve the mathematical model in this research. The model can find the optimal solution in a fast time. The minimum total travel cost in this research resulted from LINGO is IDR 17.326.320.000. Minimizing warehouse operation cost will also minimize the total company operation cost, mean higher profit will be got by the company.