An integrated approach for warehouse analysis and optimization: A case study

Abstract

The paper focuses on the analysis and optimization of production warehouses, proposing a novel approach to reduce inefficiencies which employs three lean manufacturing tools in an integrated and iterative framework. The proposed approach integrates the Unified Modeling Language (UML) – providing a detailed description of the warehouse logistics – the Value Stream Mapping (VSM) tool – identifying non-value adding activities – and a mathematical formulation of the so-called Genba Shikumi philosophy – ranking such system anomalies and assessing how they affect the warehouse. The subsequent reapplication of the VSM produces a complete picture of the reengineered warehouse, and using the UML tool allows describing in detail the updated system. By applying the presented methodology to the warehouse of an Italian interior design producer, we show that it represents a useful tool to systematically and dynamically improve the warehouse management. Indeed, the application of the approach to the company leads to an innovative proposal for the warehouse analysis and optimization: a warehouse management system that leads to increased profitability and quality as well as to reduced errors.