Storage Process Improvement and An Implementation

Abstract

The basic function of storehouses is volume and time management. Under present market conditions, businesses minimize cost and maximize profit by developing efficient material transportation methods. At a time when an infinite number of goods is produced and marketed, every second is valuable; especially in today’s economy and industry, the main goal is to minimize obstacles in production and management to increase profits, and to keep time losses and related financial    losses to a minimum. Transportation of materials to warehouses, form warehouses to the production sites or consumers involves many procedures. As these procedures usually do not create added value, they need to be eliminated as much as possible. So that the purpose of this study is to eliminate loses to save time and to increase productivity. The present study was conducted in the storehouse of a factory producing military goods. Using the Analytical Hierarchy Process (AHP) method, the simulation program to be used for modelling the improvements for the current situation and procedures in the firm was selected. The current situation was analysed with ARENA. Based on performance indicators, recommendations for improvement of the system were made. The resulting improvement in performance was calculated to be 2% in delivery reception and 4% in inspection.

Keywords

• Warehouse Management
• ARENA
• Simulation
• Efficiency Improvement

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