MODIFIED INVENTORY MANAGEMENT ON LEAN WAREHOUSING IMPLEMENTATION: A CASE STUDY IN FMCG INDUSTRY

Abstract

The warehouse performance in serving the production department is a top priority to realize the production schedule set by the companies as a response to the market. Market uncertainty is an essential factor that needs to be considered to ensure the sustainability of production activities. Excellent performance in warehouse management will help reduce the impact of risks caused by uncertainty. Thus, it is necessary to make continuous improvements in warehouse management so that its performance will be better. This research aims to formulate practical tactics that can be used by warehouse operators to improve warehouse performance, which is leaner, more productive, and more efficient. The FMCG (fast-moving consumer goods) industry was chosen as the case study in this research. The approach used is a modification of the material classification and changes in material layout. This study presents a significant difference in reducing the time spent on non-value-added activities. This research succeeded in reducing the portion of time used for non-value added activities (waste). Keywords: Inventory management FMCG Waste Lean Warehousing