REVIEW OF RELATED LITERATURE

FOREIGN

According to the article Warehouse Management in Microsoft Dynamic (2009) warehouse

management system is divided into 3 main process: Receiving items from the warehouse and

making them available, Handling items for internal distribution/movement/production, and

Picking and shipping items to customer and other locations. A series of material handling

activities is indicated in each process. Receiving items involves the physical receiving of items

when they arrive at a warehouse and then putting them away. The handling items contains

repacking or completing items for sale, inventory counting, supplying production, or simply

moving for optimization of space and for Shipping items involves selecting items from inventory

and distribute it to the customer.

Warehousing efficiency has an important role for achieving high profitability and substantial

economic potential. As a result of the research conducted by Aminoff, Kettunen and Pajunen-

Muhonen (2002) there are three important factors concerning warehouse efficiency. The order

structure, Space Utilization and the working methods in a warehouse. The order structure is

strongly related to the efficiency of the warehouse especially the outbound flow. Also, the space

utilization and work efficiency in picking packaging and shipping have a determining effect on

warehousing efficiency.

Ms. Julia Komarova, (2016) in her paper “Improvement of Warehousing Operations”

highlights the improvement of storage facility of “CKBM” Ltd. And the problems of the

warehouse’s layout, labelling system and the absence of KPIs to evaluate the workforce. She

emphasizes the purpose of the studies to propose desire changes ways to increase the overall
performance of the company by optimization of warehousing activities. The studies provide

information about the situation in the several areas; layout, Machinery and equipment, labelling,

& KPIs (Key Performance Indicator).

In the study of Operational efficiency of Warehousing, T.D. Hogenboom (2017) conclude that

using a Key performance indicator (KPIs) or through benchmarking has an impact in improving

the operational efficiency of warehouse. The studies found that the driving features of

operational efficiency in warehousing has a five parent- categories:

• Inventory management

• Design and control of the material and information flow

• Design and maintenance of warehouse facilities

• Level and use of automation

• Human performance

Warehouse is facility that has a major role in the supply chain where goods temporarily stored

then distributed from. Gunasekaran, H.B. Marri, F. Menci, (1999) stated that the warehouse is the

interface area for production lines, market, customers and suppliers, and the business environment in

general. Goods inwards (GI), constituting part of the warehouse activities, is the department responsible

for booking‐in the incoming parts from external suppliers. After the production process is improved, the

resources in the warehouse are balanced to link the internal/ external transfer of physical items. With a

broader view of the GI activities, and a look into its future, the actual problems may become clear,

understandable, and hence easy to solve. The aim of this paper is to study the problem areas in GI and

provide solutions to increase the performance of warehousing operations. First, a conceptual framework

has been developed to improve the effectiveness of warehousing operations. Second, a case study has
been conducted with the help of the model to minimize the through‐put time in warehousing operations.

Finally, a summary of findings and recommendations are presented.

Mr. Hokey Min, (2009) in his studies titled, “Application of a decision support system to

strategic warehousing decisions" he illustrates the successful development of Warehousing

Decision Support System (WDSS) that aided the Buckeye Cable Vision Incorporated (BCV) in

making its strategic warehouse expansion and re-warehousing decisions. Based on him,

Warehousing costs make up a significant part of a company’s business expenditures. However,

it’s not an easy ask to improve warehousing productivity given the increased complexity

associated with today’s warehousing activities such as Value-Added Services and cross-docking

operations. The paper also emphasizes, to cope with such warehousing challenges, decision

support system (DSS) is propose that incorporates several computer-based models into the

warehouse decision-making process. These models include; a simulation model based on

computer-aided design, an analytical hierarchy process, and a forecasting technique.

LOCAL

The efficiency of warehouse management system has an impact in the industry of supply chain

management. Many factors such as space utilization, inventory flow and inbound and outbound

operation has relationship of effective warehousing. As of the result of the study on the

warehouse operations of IDS logistics (Philippines), Inc. conducted by Bonifacio, Edillo and Salas

(2008), “The inventory accuracy of the said warehouse was not able to meet the 100% target set

by Key Product Indicators (KPIs) of the company indicating the occurrence of variance costing

the company a total of Php45,724,546.82 for negative variance due to the 656,785 units of

discrepancy found in the warehouse and the system records”. To determine the root causes they

use Why-Why analysis and Failure Mode Analysis (FMEA), the result are: different locations
assigned for specific customers, inadequate pick list design, product placement for pallet

utilization, inadequate lighting and unfamiliarity and confusion caused different bundling

quantities of the products.

Jonathan, Jardin (2011) in the study of Inbound operation of North Distribution Center one of

the problems identified that “the average pallet per man-hour is 22% lower than NDC’s standard, poor

method in documentation of items, manual offloading does not meet the standard set by the company, and

shortage of pallets and storage bins.” This has resulted to the delay of stock availability.

Reference:
https://www.emeraldinsight.com/doi/abs/10.1108/02635579910291975

https://www.emeraldinsight.com/doi/full/10.1108/IJRDM-03-2018-
0059?utm_source=TrendMD&utm_medium=cpc&utm_campaign=Emerald_TrendMD_0&WT.mc_id=Emer
ald_TrendMD_0

https://www.theseus.fi/bitstream/handle/10024/121555/Julia%20Komarova%20thesis.pdf?sequence=1

https://www.emeraldinsight.com/doi/abs/10.1108/09600030910962230?utm_source=TrendMD&utm_medium
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https://www.researchgate.net/publication/233307323_Research_on_Factors_Affecting_Warehousing_Efficien
cy

https://www.cbsi-corp.com/wp-content/uploads/2012/02/NA2009_01_Whse_Mgmt_Overview.pdf

http://mararchief.tudelft.nl/file/51597/

https://www.researchgate.net/publication/313752679_Majors_factors_for_effective_warehouse_management
_Eastern_part_of_Thailand_perspective

local

https://www.dlsu.edu.ph/colleges/gcoe/academic-departments/industrial-engineering/thesis-archive/a-system-
study-on-the-inbound-operation-of-north-distribution-center-nestle-philippines-inc-2011/

https://www.dlsu.edu.ph/colleges/gcoe/academic-departments/industrial-engineering/thesis-archive/a-system-
study-on-the-warehouse-operations-of-ids-logistics-philippines-inc-2008/