XYZ Company is distributor that focused on distributes floor and wall tiles ceramic. XYZ Company has its own warehouse for storing finished good with Last In First Out (LIFO) rotation. XYZ Company’s warehouse has area of 12,312 m2 with floor stack system. The issued that currently raised is warehouse condition that is overcapacity so several SKUs are stored out of the block even placed outside the warehouse. The impact of overcapacity are accessibility problem, storage and retrieval activities are hampered, and damaged product. In addition, the allocation of higher throughput items were not placed near to the input/output point so the material handling went through long travel to do its activities and it caused higher total travel distance. This research focuses on determining the warehouse layout to increase warehouse storage capacity and reduce travel distance. The procedure to solve the issue will be done by redesign warehouse layout with heuristic approach method. The objective are a combination of lanes depths and storage zones to increase the warehouse storage capacity by considering throughput of each SKU. The next step is allocate the items so it can reduces the monthly travel distance. Based on proposed design layout, obtained the warehouse capacity increase by 35.53% or as much as 5,319 pallet positions and monthly travel distance is decreased by 24.58% or 216,032 meters.
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