Abstract
Assigning storage location in a warehouse has significant influences on space - consuming, storage capacity, and handling activities of goods. Therefore, in this study, storage management that integrates the determinant of production quantity is considered for a production system with multi product and multi period. A mathematical model is constructed to determine the optimal values including production quantity, inventory levels, and storage locations for goods with cost consideration. Besides that, a stochastic programming- based model is used to deal with the impact of demand uncertainty on warehouse performance over a planning period. The proposed models and solution approach are then investigated in a case study for the design of warehouse layout. Numerical results obtained from the model implementation and sensitivity analysis arrive at important practical insights. The resulting study shows that the study has a significant contribution to the effectiveness of warehouse layout.
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