Track: Logistics

Abstract

Warehouse layout is an important element that affects the warehouse operating system and occupies the highest cost in logistic activities. Therefore, the warehouse layout should be effectively designed. The objective of this research was to design a warehouse layout for a drinking water factory to optimize its new warehouse space. The ABC classification was used to categorize 10 selected products into class A, B, and C. The concepts of traditional and non-traditional warehouse layouts were used to design three alternative layouts. Linear programming was used to assign the locations of the products in each alternative layout. Finally, the Analytical Hierarchy Process (AHP) was applied to evaluate and select the most proper layout. The results from AHP showed that the layout designed based on the traditional layout concept, horizontal picking rows, was the proper layout. It provided the minimum total traveling distances of about 4,150.7 meters, the setup cost of about 189,900 Thai baht, and the space utilization with a storage area of 221.16 square meters. This research provides two contributions to academic literature. Firstly, it presents the application of the ABC classification and linear programming in the context of the Thai industry. Secondly, it applies the AHP to consider multiple criteria in the selection of the proper warehouse layout.