Shelf Allocation Redesign and Warehouse Management System Improvement to Optimize Warehouse Material Flow in Oleo Chemical Industry Business

The increase in production results in an increase in the flow of material in the warehouse, while this increase does not consider the condition of the warehouse. The increase in production and the number of erratic shipments of goods is caused by external factors such as fluctuations in demand and availability of containers that cannot be controlled that will result in a bottleneck in the warehouse. The purpose of this study is to redesign the allocation of shelves and improve technology in the warehouse management system. The research method uses a material flow simulation model in the warehouse. The simulation validation and manual calculations results show that the rack simulation for dove and soap required 4,018 pallet positions and flaking drumming simulations required 1,815 pallet positions. Meanwhile, in actual conditions, the rack for dove and soap is allocated 2,834 pallet positions and 2,400 pallet positions for flaking and bagging. Class division using the ABC Classification method is carried out so that Class A, which is a group of Fast-Moving items, is brought closer to the receiving department, Class B, which is a group of Slow-Moving items, is placed after the placement of class A, then class C, which is also a group of Slow-Moving items, is placed after class B. Moreover, the results of slow-moving product optimization are seen from a reduction of 32,608 pcs from 581,096 pcs in July 2021 to 525,281 pcs in December 2021, and a reduction of $92,485 from $774,644 in July 2021 to $620,292 in December in the slow-moving value.