Abstract
Effective warehouse management impacts the financial resources of the businesses. It reduces unnecessary costs as the inventory level is accurately identified. The goal of this study was to optimize the operation time of the spare parts warehouse management. The research investigated the operational process, the time required for each operation in the warehouse, and the cost of all spare parts at the selected Garage. Prior warehouse management processes overlooked a consistent standard that warehouse staff could comply with during the order-picking process, resulting in time-consuming product searches and high inventory costs. This study optimizes warehouse management using multiple criteria, including ABC analysis based on the frequency of use, incorporated with distance and spare part characteristics consideration, in which products in category A were located closest to the door, and characteristics of each spare part are considered to identify a specific location for each spare part. This improvement results in a 48.49% reduction in total operation time for searching for spare parts. This study demonstrates the significance of ABC analysis in optimizing warehouse management.
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