This research is to study how to optimize warehouse management for the metal can manufacturing company, DDD. The research focused on its warehouse operation and also the product categorization by applying ABC analysis as a research tool. According to the theory, inventory design and storage layout will be stated. Collecting the company’s yearly sales record starting from January 2015 to December 2015, there are 68 items in total.
This inventory categorization method based on its value and turnover divided the overall items into 3 groups.
Group A, 10 items of the total, accounts for 82.12% of the overall value.
Group B, 20 items of the total, accounts for 15.71% of the overall value.
Group C, 38 items of the total, accounts for 2.17% of the overall value.
The researcher utilized the findings to calculate the reorder point volume, maximum and minimum stock. Appropriate inventory control can be expected at the safety stock of 0.5% per day. Then, 3 models of inventory design and storage layout planning can be compared under the same area and the same factors. In conclusion, the research result showed that model 2 outperformed the others due to its less item-picking time with 15,597.42 meters per a pallet-picking round.