Improvement on Warehouse

Management in
Sanitary Care Products Asia, Inc.:
A Recommendation of Chip Clip

A project

Presented to Engr. Maria Rosa

Castillo

College of Engineering

University Of Batangas

Lipa Campus

In Partial Fulfillment for the

Requirements in IE 14

Production System

First Semester A.Y. 2016-2017

Researchers:

Contreras, Jessa Mae P.

Ortega, Prince Geep V.

Gonzales, Kathyrine L.

Dela Vega, Jeffrey M.

1
Abstract
The purpose of this study was to provide an
alternative solution and recommendation to
the warehouse management system of
Sanitary Care Products, Asia. This study
focused on the Inventory section and storage
of the finished goods. In order for a
valuation of inventory to be correct, the
quantity on hand needs to be accurate. The
problems that occurred in the areas were
the improper implementation of FIFO
system, damaged boxes due to improper
storage of products and overstocking.
Streamline Analysis was used to evaluate
and analyze these problems. Direct
observation, interview, documents and data
collection were carried out to gather data
for the study. It was recommended to use
chip clip as a help in using FIFO system, to
easily locate the first-in products.
Key words: warehouse management, FIFO
System, improvement
CHAPTER I
Introduction
A warehouse management system, or WMS,
primarily aims to control the movement and
storage of materials within a warehouse and
process the associated transactions,
including shipping, receiving, putting away
and picking. The goal of warehouse
operations is to satisfy customer needs while
utilizing space, equipment and proper
material handling of the goods.
A surprising deficiency in many
warehousing operations today is the absence
of a simple stock location system. Knowing
not only what or how much is in the
warehouse, but also where it is, is
fundamental to the success of the operation.
Many warehouse problems stem from the
lack of an effective stock location system.
The materials, spare and finished goods can
be moved in and out of warehouse manually
or using various kinds of equipment and
systems. The result is a significant increase
in storage location utilization. Knowing
where a product is stored will also have an
inherently positive impact on product
retrieval efficiency, though it does not
necessarily increase efficiency. By having
the system that automatically selects the best
location based on parameters such as cube
size, product type, and frequency of order,
and by having the system that informs the
personnel of the assigned storage location,
significant labor and space productivity can
be gained. With the assigned location in
hand, the personnel are not forced to cruise
through the warehouse searching for an
empty location. Travel time is also reduced,
particularly as the warehouse approaches
maximum capacity. Furthermore, the
possibility of mismatching loads to storage
openings will be minimized and overall
cubic space utilization increases. Finally, the
opportunity to combine partial pallets into
larger locations increases. This re-
warehousing helps to improve overall space
utilization.
According to Hudock, B. (2008) author of
Renewing the Warehouse from Logistics
Insight Asia, a warehouse will normally run
out of space due to rapid growth, seasonal
peaks, large discount buying, and planned
inventory builds for manufacturing
shutdowns, facility consolidation, or even a
slow sales period. Generally there are three
types of space deficiencies that occur in a
warehouse. The first type results from
simply having too much of the right
inventory. The second is the result of having
too much of the wrong merchandise, and the
third comes from using the existing
warehouse space poorly. To appropriately
address each one of these space issues, one
must first understand the issues and what
creates them. When relocation or facility
expansion is not an option, three paths may
2
be followed. These are external or
temporary storage, internal warehouse
redesign and improving inventory
management. It is important for the
warehouse to be creative in space creation.
In most businesses, the actual flow of
materials follows FIFO, which makes this a
logical choice. One of the valuation methods
is the Fist In First Out (FIFO) system. FIFO
is a storage technique which helps in the
management of inventory. In this system,
older inventories will be sold first. The FIFO
cost formula is often used by entities
because the inventories are valued at current
prices. The cost of goods purchased first
(first-in) is the cost of goods sold first (first-
out). It is based on the assumption that older
inventories are usually sold first because
they can get old and then become obsolete.
It is a logical method because it takes into
consideration the normal procedure of first
selling those items which were purchased
first. There are usually fewer inventory
layers to track in a FIFO system, since the
oldest layers are continually used up. This
reduces record keeping.
Background of the Study
Company Improvement is a systematic
approach to help an organization optimize
its underlying processes to achieve more
efficient results. The study that is conducted
in a certain company will help the firm in
improving their overall external and internal
performance. The study will indeed help the
researchers in refining and enhancing their
skills and knowledge on analyzing and
solving a certain problem that exist in a
company. The Company study main
initiative is for the researchers to be more
familiar in the future problems that they
might encounter in their future profession.
Established in October 1996, Sanitary Care
Products Asia, Inc. (SCPA) is a Filipino-
owned, Christian, family-run,
manufacturing-converting business
established to serve the Philippine market
with high quality tissue products at the best
value prices. As a tissue converter with
multiple offices and producing plants
nationwide, SCPA serves both the retail and
institutional markets. In the recent years,
SCPA has expanded in offering even more
types of hygienic products as well as
chemical cleaning products in partnership
with Ecolab USA.
SCPA started as a business with the aim to
help people in putting our customers first,
SCPA envisioned producing only the
highest quality tissue products available. At
the time, the company was the first to offer
high quality and very hygienic Virgin Pulp
paper to Filipinos. It then presented these
products at the best price possible, the proof
of which are our prices having stayed very
close to the levels when the company
started. By investing in better machines,
innovating our products, and making wise
investments, we were able to absorb most of
the inflationary costs, and this is how we
have continued to give our customers the
best prices in the market. Moreover,
throughout the 20 years of its life, SCPA is
recognized consistently by its customers and
partners as one of the top firms in providing
quality service in terms of hygienic
products. This statement of being of help to
3
people, particularly our customers, is not
just a promise, it is why we started the
business and it is what drives our work
daily. With 7 production centers distributed
among the 9 branches and 13 satellite
offices in major parts of the Philippines,
SCPA is poised to easily serve its client
nationwide. This is a key decision and a
major investment that SCPA has made to
show our commitment to our customers that
we are going to serve them everywhere there
is a need.

The company has the vision to become

synonymous with quality and innovative
products at reasonable price and excellent
service. Their mission is to provide hygienic
and good quality tissue products and
excellent service. In order to achieve the
goals, proper arrangement of chain
command is necessary to have organization
inside the company with regards to the
management. An organizational structure
shown in Figure 1.1 and 1.2 is provided for
achieving target levels of organizational
performance. The arrangement is done to
divide the tasks accordingly and to perform
operation directed to companys vision.

Figure 1.1

General Organization Structure

4

Figure 1.2
Production Department Organizational
Structure
Rationale
Warehousing is the storage of goods,
whereas distribution center precedes a post-
production warehouse for finished goods
held for distribution. Therefore,
warehousing and distribution centers
basically have the same function of goods
and products storage (Coyle at el, 2003).
The efficient management of warehouses
helps to optimize the existing production
and distribution processes and greatly assist
in the goal of cost reduction and service
enhancement.
The researchers chose to conduct the study
in SCPA because it has a warehouse here in
Lipa City. Also they are currently using
First-In-Fist-Out as their storage system
technique, which is the subject of the study.
By this, the researchers observed and
studied the warehouse management of the
company, from storing the goods in the
assigned storage to picking for delivery
using the FIFO technique. The researchers
want to achieve the objectives provided at
the end of the study.
Scope and Limitation
This study focuses on improving the
inventory and warehouse area of Sanitary
Care Products Asia, Inc. The research will
only be limited in the warehouse department
of the company, to collect and gather the
data needed in the specific department. The
researchers interviewed the warehouse
workers only and observed the process in
the warehouse including the picking and
storage process of finished goods.
Significance of the Study
The researchers believe that this
study will be beneficial to the following:
To the owner of the company, the result of
this study will be beneficial for them
because it serves as a source for them in
checking if their investments are being
optimized.
To the workers and management of the
company, the result of this study will help
them in identifying the factors in improving
the workplace station. This will help them in
placing and matching the right worker to the
machine.
To the future Industrial Engineering
Students, it will serve as a reference for
them in familiarizing with Warehouse
Management.
5
General Objectives
The objectives of the study are for
the researchers to know more about the
overall process in a company or industry and
to be aware on the different problems that
may interfere in the companys productivity
and process. The main initiative of this study
is also for the student to be ready and to be
aware on their future profession.
Specific Objectives
The study aims to:
Define a problem in the warehouse
management of Sanitary Care
Products Asia, Inc.
Construct a possible alternatives
and solution that can help the
company, including the
maximization of the warehouse
space, and manage the utilization of
FIFO System in the companys
inventory management.
Statement of the Problem
The study intends to observe and assess the
warehouse management practice at SCPA
and identify certain areas which can be
improved. The researchers aim to assess also
effectiveness of FIFO storage technique that
is implemented in warehouse of the
company. It is expected that the researchers
can help the company to improve the
existing performance in the warehouse,
especially in implementing the FIFO system.
Therefore, it can be understood that this
study aims to find out the answers to the
following questions:
How the companys warehouse is
managed at present?
How the FIFO storage technique is
implemented?
What are the scopes of
improvement?
What improvement or
recommendation can the researchers
provide?
CHAPTER II
Review of Related Literature
This chapter will provide a concise
discussion of concepts, theories and tools
that the proponents used to determine the
solution to problems. Therefore, thorough
reading and research must be done to obtain
necessary information. It is necessary for the
proponents to have background and
knowledge about the different Industrial
Engineering tools and techniques to help in
conducting the study.
According to Kulwiec, R. (2002) author of
An Internet Portal for the selection of
Warehouse Management System from
Distribution Business Management Journal,
WMS is an important component of modern
logistics systems. No warehouse or
distribution center can function without
them and they can only be integrated into
international logistic chains if 22 they have
suitable interfaces for integration into the
worldwide information network. The need
for suitable interfaces and the requirements
of modern, highly structured distribution
centers place high demands on Warehouse
Management Systems. However, despite the
high requirements of modern logistics
6
systems, there are more and more
warehouses that only require the basic
functionality of a WMS. To achieve WMS,
entire operation and features should be
studied and analyzed thoroughly. One key
role in managing warehouse is designing the
layout effectively.
In storing products, a positive identification
and load-tracking of products that have been
received and are ready for delivery are
important based from Thompkins Associates
(2002) author of Warehouse Management
Systems Technologies: Transforming
Customer Satisfaction Through Better
Inventory Management. Such tracking is
necessary in assessing a products
availability. This feature is necessary to
ensure product traceability to the customer
level and to improve cycle count inventory
by storage location as opposed to counting a
total on-hand physical inventory. The WMS
must also be able to correct discrepancies as
they occur, and the real-time update of
inventory, lot, and stock location records to
provide timely information upon which
decisions can be made. The more real-time
24 update, the greater the reduction of
information lead-time. For Morton, R.
(2009) author of A WMS Can Pay in
Many Ways retrieved from
www.MHMonline.com, most distribution
organizations have forgotten how vital their
warehouse operation is to their overall
success or failure in good and bad times.
The inventory of company includes its raw
materials; work in process; supplies used in
operations as well as finished goods (Muller,
2011). Managing an inventory is aimed at
satisfying customer requirement while
minimizing total operational cost. Emmett
(2011) defines inventory management as an
approach to manage the product flow in a
supply chain, to achieve the required service
level at an acceptable cost. Some techniques
are adopted to minimize the level of stocks
or inventories held in warehouses.
Arnold et al. (2008) take on a more general
view and describe that material handling
must be aligned with the overall warehouse
management and work with the following
areas: Optimal use of space: cost of space
often stands for the largest capital cost.
Temporarily warehouse space for example
buffers does not add value to the customer
and is only an expense caused by inefficient
processes. Effective use of equipment and
labor: materials handling equipment and
labor represent the second-largest capital
cost and the largest operating cost. An
increase in equipment reduces the amount of
staff.
One vital area determining the efficiency of
warehouse is the determination of the proper
storage locations for potentially thousands
of products in a warehouse. Various factors
affecting the storage assignment like order
picking method, size and layout of the
storage system, material handling system,
product characteristics, demand trends,
turnover rates and space requirements are
been extensively studied. It has been
suggested that selecting appropriate storage
assignment policies (i.e. random, dedicated
or class-based) and routing methods (i.e.
transversal, return or combined) with
regards to above factors is a possible
solution to improve the efficiency (Chan,
2011). Various decision support models and
solution algorithms have also been
established to solve warehouse operation
planning problems (Gu et al., 2007).
Both capacity and the design of processes
must therefore be carefully planned in order
for the warehouse to have the desired
performance. Schleyer and Gue (2011)
7
conclude that the overall performance of a
warehouse is determined on how well the
customer agreements are met.
Hansen and Gibson (2008) emphasize the
importance of understanding the
characteristics, movements and velocity of
products moving through the warehouse
when choosing an appropriate storage
method. They argue the need for more than
one storage method as different products
have different characteristics. Lumsden
(2007) lists the most common storage
methods which are also confirmed by
Dolgui and Proth (2010) namely high rack
storage, deep storage and shelf box stocking.
High rack storage is the most common
storage method for industrial products.
Pallets and boxes are placed in
compartments created by vertical elements
into a pallet rack. This way it is possible to
store pallets and boxes on top of each other,
which makes picking a specific pallet easier
than deep storage. Deep storage is where
boxes are put on the floor and top of each
other building outwards from the back. Only
the pallets furthest out are accessible for
picking. But the disadvantage is it has a risk
of making the products in the back, making
it suitable for LIFO storage method only.
Shelf box stocking is useful for smaller
items needed to be handled manually. Boxes
are put together into racks creating a wall of
compartments.
Maximum capacity is the maximum volume
of a specific output that a combined set of
resources can create (Jonsson & Mottson,
2009). The maximum output a process can
create is when the process is 100% utilized
each day, everyday. This is rarely the case as
the level of staffing varies over time.
However, they argued that the nominal
capacity is more interesting to measure. The
nominal capacity is a level that a process has
under normal working conditions and is
encompassed by four variables: number of
manufacturing/equipment units, number of
shifts per day, amount of hours in each shift
and number of days in each period. With the
help of these parameters, it became easier
for them to analyze the current staffing in
Gothenburg warehouse, which is the subject
of their research, with respect to what is
actually needed to cope with the demand
fluctuations.
The demand for capacity varies over time, as
the customer demand is fluctuating in terms
of time and volume. Leitch (2001) states that
it results in discrepancy between the demand
for capacity and customer demand, where
too much capacity is unnecessary expense
while too little will result in system
restrictions and cause delays that increase
the WIP and through-put time. He argues
therefore that capacity must be planned
carefully with consideration to the system
environment.
Lead time is defined as the elapsed time
from an internal or external customer places
an order until it is delivered to its designated
place (Farhani et al., 2011). The time it
takes to procure, manufacture, and distribute
goods is often longer than the time a
customer is willing to wait, therefore there is
a discrepancy between the actual through-
put time and the customer expectations. It is
therefore necessary to have a certain level of
work in progress (WIP) and finished goods
to secure delivery within the expected
timeframe (Baker and Canessa, 2007).
The motives for keeping inventories differ
among companies, depending on, if the
inventory is designed for a process, for a
flow of materials, or for a function it has to
8
accomplish for a company (Friberg, Nilsson
& Warnbring, 2006). Inventory represents a
large (if not largest) portion of assets of
manufacturing firms and as such, makes up
an important part of the balance sheet items.
Olowe (2009) opined that inventory
management is concerned with efficient of
stocks to achieve an optimum inventory in
the firms working capital. Kurfi (2003) also
stressed that, inventory form the linked
between production and sales of product, it
represent the major current asset investment
in most manufacturing firms. A proper
stocking process is required to ensure that
items are available whenever needed.
According to Biederman, (2004), one of the
assumptions behind the lot sizing is that
demand for an item is independent of all
other demands. This situation is true for
most manufacturers of finished goods.
Ballou (2000) concurs that, storage methods
are vital aspects to be considered when an
organization is setting up a warehouse, in
line with that it will enable an organization
to store its materials safely and securely for
operational efficiency. Stock control
involves acquisition of storage systems.
Storage systems refer to the techniques used
to keep inventory safely and free from
deterioration through conservation in the
organization, eliminate cases of damage of
materials, theft, pilferage, overstocking and
obsolescence. Cases of stock outs of
materials are as a result of poor
documentation, poor monitoring of
inventory levels and lack of control of stock
movement within the stores.
The purpose of equipment is to relieve
workers from unsafe work methods by e.g.
heavy lifting, and increase efficiency. The
type of equipment in use in a warehouse is
therefore largely dependent on the product
and what tasks are carried out (Lumsden,
2007).
Lysons (2006) says that, inventory
management involves a process of
efficiency overseeing the constant flow of
units into and out of an existing inventory.
This process usually involves controlling the
transfer in of units in order to prevent the
inventory from becoming too high, or
dwindling to levels that could put operation
of the company into jeopardy. Competent
inventory management also seeks to control
the costs associated with the inventory, both
from perspective of the total value of the
goods included and the tax burden generated
by the cumulative value of the inventory.
In random storage there is no assigned slot
for any of the SKUs. Items are stored in any
available location. Most commonly, this
policy is implemented by storing items at
the most convenient storage location
available and retrieving on a First FIFO
basis. This allows for inventory to be rotated
while still providing some handling
efficiency. The resulting storage pattern is
very similar to a completely random policy
if the throughput of the warehouse is high
and the utilization is close to the warehouse
capacity. (Frazielle, 2002)
The purpose of a warehouse is to store
goods that will take longer to produce and
distribute than what the customers are
willing to wait (Gu et al., 2006). A properly
managed warehouse should therefore know:
what is stored, where it is stored, and in
what quantities, in order to fulfill customers
expectations on time.
9
Goods that are stored in buffer and in final
storage need rules for how they should be in
picked. The two most common rules (Lee,
2006) are First In First Out (FIFO) and Last
In First Out (LIFO). FIFO is more suitable
for sequenced and easy-outdated products
while LIFO is better suited for bulky
products.
Synthesis of Review of Related Literature
All of these research articles are useful in
the proponents company study on how to
develop the management system of a
warehouse regarding new trends in the
industry. Improving warehouse management
system includes its primary functions for
better service and customer satisfaction. The
warehouse must provide, its main functions,
which are the product storage, inbound
operation and outbound operation. Under
product storage, returned items and the
excess from zeroing are stocked in the
warehouse until an order arrives. In order to
improve the warehouse product storage
function, proper arrangement is necessary to
improve inbound and outbound operation of
the warehouse. Inbound operation includes
storing of goods from the production area
while the outbound operation is the outgoing
of goods form warehouse to delivery.
Warehouse management should find a way
to provide the perfect order for the
customers. With these researches, the
proponents have a better analysis on how to
conduct the study regarding the warehouse
management system.
CHAPTER III
Methodology
Company Improvement is a systematic
approach to help an organization optimize
its underlying processes to achieve more
efficient results. The study that is conducted
in a certain company will help the firm in
improving their overall external and internal
performance. The study will indeed help the
researchers in refining and enhancing their
skills and knowledge on analyzing and
solving a certain problem that exist in a
company. The company study main
initiative is for the researchers to be more
familiar in the future problems that they
might encounter in their future profession.
In order to perform this research, the
researchers seek for a company that is
willing to conduct a study for their
companys improvement. Through an
approval of permission letter submitted to
the company, the researchers visited the
company and a warehouse observation has
been done followed by an interview. The
researchers observed how the company does
the allocation of finished goods, how it is
moved from the production area to the
warehouse and to the specific storage.
Observation on the flow was also made, on
which the finished goods will be ready for
the delivery, how the workers get the
specific product and assessed how they
follow the FIFO technique. The researchers
interpret the data in narrative form for a
good presentation.
Ultimately, a report has been done about the
data collected and observations gathered in
the company. The data collected was studied
and a recommendation was made. The
results will be then further discussed.
10
CHAPTER IV
Data Analysis and Calculations
a) Current System
Figure 2.1
Current Production Flow
Inventory Counting System
Manual counting of finished goods is one of
the systems that are being used in the
warehouse. All of the products are manually
counted first before entering in their
inventory counting software. SCPA is
currently using NetSuite, an American cloud
computing company based in San Mateo,
California, that sells a group of software
services used to manage a business
financials, operations, inventory
management, enterprise resource planning
(ERP), to keep track of financials, host E-
commerce stores and customer relations.
According to the warehouse manager of the
SCPA, the capacity of the warehouse is up
to 100, 000 boxes. As of April, the
warehouse is holding 80,000 boxes of
products. During peak season, the number of
boxes stored exceeds the warehouse
capacity, causing to have a small isle and
difficulty in the transportation of the goods.
List of Current Products in warehouse
Figure 3.1
Femme & Cheers Products
11
 Figure 3.2
Tisyu Products

Figure 3.2
Sanicare Products

Figure 3.3
Jade Products

12
 Figure 4
Current Inventory level
b) Another type of storage used is
Current Storage System
a) One type of storage system used
in SCPA is floor storage. The
boxes are placed on the pallet
creating rows and columns on
the floor. The boxes are piled on
top of each other without
damaging the packages.
Figure 5
Floor Storage
shelving rack where the goods
are placed in metal shelves. The
upper racks in SCPA are for the
slow moving products and the
lower racks are for the fast
moving products, so that they
will be easily got. This method
can also minimize the needed
space for the products storage.
13
 Figure 6
Rack Storage

Finished goods are placed on pallet

racks for easy accessibility and
visibility of inventory. Also, it will
be easy for the workers to move the
products in and out of the
warehouse, by using the fork lift
together with the pallets.

Random storage is also being

followed in SCPA. Finished goods
from production area are placed on
vacant space. Products do not have a
specific location or storage space.

14
Current Warehouse Layout

Figure 7
Warehouse Layout

15
 b) Problem Identification

During the observation and plant visit, the

researchers identified several problems in
the warehouse management of SCPA. These
problems had a big impact on the operation
on the warehouse, especially in storing the
finished goods. The workers were also
interviewed and honestly agreed about the
problems they encounter in the warehouse.

FIFO system not fully implemented.

There are cases that the workers
tend to get the products which are
not the first in, because of confusion
or laziness. As a result, the products
which were first made are stocked
longer than the latest made products.

Figure 9

Damaged boxes due to improper

storing and piling of the boxes.
Renewal of boxes can add to the
cost of packaging

Figure 8

Products are labeled improperly.

There are only signs saying not to
get the products, because it is
freshly made.

Figure 10

16
 c) Root Cause Identification

After identifying the problems, the

researchers worked in finding the root cause
of the main problem which is the non-
effective implementation of FIFO system.
Streamline was used in root cause analysis,
and found out that the root cause of the
problem is the improper stocking method.

Figure 10
Streamline

17
 d) Discussion of Alternative Step by step on how to use the Chip Clip.
Solutions & Improvement
(Storing from production to warehouse)

In order to effectively use FIFO System, one
of the alternative solutions is the usage of
Chip Clip.
These chips will help in determining which
batch of products were really the first in
from the production. It will be placed in
front of the piles and rows of the products.
1. When finished product arrived to
warehouse from production, get combined
chip clip in its storage.
2. Attached the clip to the finished product
3. Place the chip to the cylinder container (at
the top of it).
4. Make sure they have the same number, so
it can be easily find.
5. Place the finished product to its
designated area. Base on the number
indicated in the chip/clip.
6. A map is provided to check for the
designated area per number.

(Outgoing of products)
1. Take a chip at the bottom of cylinder.
2. See the number placed on the chip.
3. Locate the number placed on the chip on
the map.
4. After getting product, put the chip
together again and place it back to its
storage.

Figure 11
Chip-Clip Illustration

18
 Figure 12

Chip-Clip Location

Map the purpose of this map is to easily

determine where the products to get first are.

Incoming the last product finished.

Outgoing products that needs to release or

to get first.

Figure 13

Chip Clip Parts

19
Recommended Warehouse Layout
Figure 14
Recommended Layout
Other recommendations are:
Conducting trainings for the
workers warehouse
Purchasing at least one more forklift
Having a good communication with
the production department, to avoid
overstocking.
Pre-planning and organization can
prevent a warehouse from becoming
disorganized, by identifying the
most efficient location for all
inventories, factoring in the
products storage characteristics,
family and supply needs.
Reorganized the warehouse, on
every two pallets put a way on both
side for pallet track.
20
CHAPTER V
Results and Discussion
a) Discussion of evaluation
alternative solutions
Cost Analysis
Table 1
Cost Analysis
Benefits:
Implementing Chip clip will
minimize the time in locating the
right stock to be out. The confusion
in choosing the products will be
avoided. Also, the products fresh
from the production can be easily
stored because a free space can be
easily located.
of
Adding forklift will minimize the
time in loading finished products to
the delivery truck. Forklift can also
reach high object so it can help
worker reaching stocks in higher
racks. Comparing it to the manual
pallet track, it will be easier and
efficient to use the fork lift.
CHAPTER VI
Conclusions and Recommendations
The researchers conclude that warehouse
management plays a big role in any
company. The performance of a warehouse
is judge based on its operation such as
keeping track of items, proper allocation and
storage of products and non-damage
packaging of products. The materials and
finished products can be move in and out of
the warehouse manually or using other
equipment. The efficiency of material
handling adds to the performance level of
warehouse. Proper implementation of
systems must be followed to avoid the
problems inside the warehouse, especially
with regards to the products. With the
different problems, adds costs and time.
Proper implementation and utilization of
FIFO valuation method is very important, so
that the finished goods are distributed
accordingly. Proper trainings and
communication of workers must also be
practiced, to avoid the confusion about the
products. The company must also follow the
capacity of their warehouse to avoid
overstocking, which is not a good condition.
21
With overstocking, the goods are placed in a
narrow space, and there will be less space
for the workers to move freely and for the
fork lift. The production must comply with
the capacity of the warehouse. It is
recommended to monitor the capacity of the
warehouse to know if it can still handle and
hold certain amount of products. Good
store-keeping requires proper classification
and codification of various items of stores
on stock.
CHAPTER VII
References
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Introduction to materials management (6th
edition.) Prentice Hall, New Jersey, United
States of America.
Baker, P. and Canessa, M. (2009)
Warehouse design: A structured approach.
EuropeanJournalofOperationalResearch.
Vol. 193, No.2, pp. 425--436.
Ballou H. (2000). Evaluation inventory
management performance using turnover
curve. International Journal of Physical
Distribution & Logistics management.
Biederman, D. (2004) Reversing Inventory
Management. McGraw-Hill, New York.
Friberg, L., Nilsson, S. and Warnbring, S.
(2006) Inventory Valuation- difficulties in
Manufacturing Companies; what and why?
Unpublished Masters Thesis. School of
management and Economics, Advanced
Concepts in Logistics Management, Vaxjo
University
Chan, F., and Chan H.K., (2011), Improving
the productivity of order picking of a
manual-pick and multi-level rack
distribution warehouse through the
implementation of class-based storage,
Expert Systems with Applications, Vol.
38(3), pages 2686-2700.
Dolgui, A. and Proth, J.M. (2010)
Warehouse Management and Design.
Springer, London, United Kingdom.
Emmett, Stuart (2011) Excellence in
Warehouse Management: How to minimize
Costs and Maximize Value.
Farhani, R., Rezapour, S. and Kardar, L.
(2011) Logistics Operations and
management: concepts and models. Elsevier,
Massachusetts, Unites States Of America.
Frazelle, E. (2002). World-class
warehousing and material handling.
McGraw-Hill:New York
Fumi, Andrea, Scarabotti, Laura, and
Schiraldi Massimiliano (2013), Minimizing
Warehouse Space with a Dedicated Storage
Policy.
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(2007), Research on warehouse operation: A
comprehensive review, European Journal of
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21.
Hansen, P. and Gibson, K. (2008), Effective
warehouse slotting, National Provisioner.
Vol 222, No. 5, pp. 90-94.
Jonsson,P. and Mattson, SA. (2009).
Manufacturing planning and control.
McGraw--Hill Education,
London,GreatBritain.
Kurfi, A.A. (2003) Principles of Financial
Management, Kano:Benmark Publishers, 1st
Edition.
Lee, C. (2006), Two-warehouse inventory
model with deterioration under FIFO
dispatching policy. European Journal of
Operational Reearch, Vol. 174, No. 2, pp.
861-873.
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Leitch, R. (2001). Effect of stochasticity,
capacity and lead time cost drivers on WIP
and throughput in a pull production
environment. Management Accounting
Research, Vol. 12.

Lumsden,K.,(2006)
Logistikensgrunder.Studentlitteratur, Lund,
Sweden.

Lysons, K. (2006). Purchasing and Supply

Chain Management, (3rd Edition). London
Prentice Hall

Muller, Max. (2011) Essentials of Inventory

Management. AMACOM Div American
Mgmt Assn.

Olowe, A. (2009) Financial Management:

Concepts, Financial System and Business
Finance. Lagos: Brierly Jones Publishers, 2nd
Edition.

Schelyer, M. and Gue, K. (2011),

Throughput time distribution analysis for a
one-black warehouse. Transportation
Research Part E, Vol. 48, No. 1, pp. 81-92.

Skeet, J. (2001), Maximizing Profitability

through inventory management Prentice
Hall, Englewood Cliffs, N.J.

Wauna, Susan and Obwogi, Joseph (2015)

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KenGen, International Journal of Scientific
and Research Publications, Volume 5.

23
CHAPTER VIII

Appendices

24
25
JEFFREY M. DELA VEGA
B3 L1 St. Joseph Homes 1,
Inusloban, Lipa City
delavega.jeffrey@yahoo.com
+639362718594

PERSONAL BACKGROUND September 20, 2008 September 19,

2011
Nickname : Jeff AZ Contracting System Service Inc.
Date of Birth : August 02, 1989 Semi Additive Process/ Pattern Plating
Place of Birth : Bulacnin, Lipa City Production Operator
Age : 28
Civil Status : Single September 19, 2011 June 10, 2013
Citizenship : Filipino AZ Contracting System Service Inc.
Languages : Filipino ad English Semi Additive Process/ Pattern Plating
Interest : Communication people Production Operator
Skills : Computer skills
(AutoCAD, Computer MEMBERSHIP AND AFFILIATIONS
Fundamentals and
Programming using SAP Junior Philippine Institute of Industrial
Business ONE), Engineers (JPIIE)
Computer Literature 2015 Present
(MS Word, PowerPoint,
Excel Office) Batangas Society of Industrial
Engineering Students (BSIES)
EDUCATIONAL BACKGROUND 2015 - Present

Bachelor of Science in Industrial

Engineering
University of Batangas Lipa City
2013 - present

WORK EXPERIENCE

April 1, 2008 September 14, 2008

Ibiden Philippines Incorporated
Semi Additive Process/ Pattern Plating
Production Operator

26
JESSA MAE P. CONTRERAS
Sitio Sto. Toribio, Lipa City, Batangas
Mobile No.: (+63) 995 746 2636
Email: jmpcontreras0330@gmail.com

PERSONAL INFORMATION September 30, 2017

University of the Philippines Los Banos
Nickname : Jessa
Date of Birth : March 30, 1997 PIONEER: Leading the future with Lean Six
Place of Birth : Calamba City, Laguna Sigma
Age : 20 September 17, 2016
Civil Status : Single University of the Philippines Los Banos
Citizenship : Filipino
Language Skills : Filipino and English IEs of Tomorrow: Leaders of Change and
Skills : Computer Literate (MS Innovators of the Future
Office Word, September 16, 2016
Powerpoint, Excel), Batangas City Convention Center
Basic knowledge
in SAP, AutoCAD INDUSTRIAL ENGINEERING: Integration,
Innovation, and Profession
EDUCATIONAL BACKGROUND September 14, 2016
University of Batangas Lipa City
University of Batangas Lipa City
Bachelor of Science in Industrial Engineering
2015 Present AFFILIATIONS

Junior Philippine Institute of Industrial

Malayan Colleges Laguna
Engineer (JPIIE)
Bachelor of Science in Industrial Engineering
Member
2013 2015
2016-present

Batangas Society of Industrial Engineering

SEMINARS / TRAININGS ATTENDED
Students (BSIES)
Member
PERCEIVE: INDUSTRIAL ENGINEERS ROLES
2016-present
IN SERVICE QUALITY MANAGEMENT

27
CATHYRINE LUNA GONZALES
Banjo West, Tanauan City, Batangas
E-mail: kathyrinegonzales027@yahoo.com
Mobile Number: 0917-145-6858

PERSONAL INFORMATION
PIONEER: Leading the future with Lean Six
Place of Birth : Batangas, Philippines Sigma
Citizenship : Filipino September 17, 2016
Religion : Christian University of the Philippines Los Banos
Height : 57
Weight : 55 kgs.
IEs of Tomorrow: Leaders of Change and
ASSETS AND CAPABILITIES Innovators of the Future
September 16, 2016
Well-versed in Microsoft Office Batangas City Convention Center
(Word, Excel, PowerPoint, Access)
Knowledgeable in Document INDUSTRIAL ENGINEERING: Integration,
Controls, Basic Accounting, and Innovation, and Profession
Project Filing Systems
September 14, 2016
Experienced in secretarial duties.
University of Batangas Lipa City

EDUCATIONAL BACKGROUND
AFFILIATIONS

Tertiary Education Junior Philippine Institute of Industrial

Bachelor of Science in Industrial Engineering Engineer (JPIIE)
University of Batangas Member
Leviste Hwy, Lipa Batangas 2015-present
5th year Present
Batangas Society of Industrial Engineering
Students (BSIES)
SEMINARS / TRAININGS ATTENDED Member
2015-present
PERCEIVE: INDUSTRIAL ENGINEERS ROLES
IN SERVICE QUALITY MANAGEMENT
September 30, 2017
University of the Philippines Los Banos

28
PRINCE GEEP ORTEGA
Brgy. Paligawan Balete Batangas
Mobile No.: 0997-247-5529
Email:princegeeportega@yahoo.com.ph

PERSONAL INFORMATION September 30, 2017

University of the Philippines Los Banos
Nickname : Geep
Date of Birth : September 8, 1997 PIONEER: Leading the future with Lean Six
Place o f Birth : Paligawan, Balete Sigma
Age : 20 September 17, 2016
Civil Status : Single University of the Philippines Los Banos
Gender : Male
Citizenship : Filipino IEs of Tomorrow: Leaders of Change and
Languages : English and Filipino Innovators of the Future
Interest : Communication people September 16, 2016
Skills : Computer skills Batangas City Convention Center
(AutoCAD, Computer
Fundamentals and INDUSTRIAL ENGINEERING: Integration,
Programming using SAP Innovation, and Profession
Business ONE), Computer September 14, 2016
Literate (MS Word, University of Batangas Lipa City
PowerPoint, Excel Office),

EDUCATIONAL BACKGROUND AFFILIATIONS

Bachelor of Science in Industrial Junior Philippine Institute of Industrial

Engineering Engineer (JPIIE)
University of Batangas Lipa City Member
2015 -present
2013-2018
Batangas Society of Industrial Engineering
SEMINARS / TRAININGS ATTENDED Students (BSIES)
Member
PERCEIVE: INDUSTRIAL ENGINEERS ROLES 2015 -present
IN SERVICE QUALITY MANAGEMENT

29