WAREHOUSE OPTIMIZATION BY USING LINEAR PROGRAMMING METHOD

Pornkiat  Phakdeewongthep

Pornkiat Phakdeewongthep College of Logistics and Supply Chain, Suan Sunandha Rajabhat University, Bangkok, Thailand

Keywords: linear programming method, Excel solver, ABC analysis

Abstract

This research was a study of increasing efficiency in warehouses by using linear programming methods. The research aimed to reduce the distance to pick up the products. The company was used to do this research was a company located in Nakhon Pathom province. The company is a small and medium sized company (SMEs), plastic manufacturing factory. The population were used to study were the total number of products. The sample groups were used in this study were bag and roll product groups. The data were used in the study would collect the data on the demand for pallets during January 2019 - May 2019. After that, follow the steps: to calculate the product segmentation by ABC, to calculate the position of the product using Linear Programming and comparison. The results ABC analysis showed that Roll type products were classified as Group A. Next, calculate the linear programming equation. The objective equation is to have the smallest distance traveled. There were 2 conditional equations: 1. Set the number of pallets to be placed and 2. Set the variable named Area code as Binary. This research can reduce the distance from 1170 to 1116, with a distance of 54 meters. Accounting for 4.25 percent.