Warehouse Improvement Evaluation using Lean Warehousing Approach and Linear Programming

Lean manufacturing tools have been applied for several years to improve company's internal logistic. Furthermore, a lot of factors such as globalization, competition and shorter life-cycle product force companies to create production process more efficient and cheaper. The acceptance of lean philosophy in the company means not only respecting the lean principles in the manufacturing area, but also in all the process that performed inside the company. The implementation of lean principles in the warehouse area is a certain step of improvement warehouse process and performance, but also the whole company. However, the implementation of lean principles in warehouse area is relatively new subject in logistics. Most of the research that has been done before only focused on eliminate waste and didn't count the cost that can be saved after lean implementation. This paper's objective is to identify waste that might be able to appear in warehousing process using value stream mapping. After the waste successfully identified, the next step is doing improvement using lean tool and count the implementation cost using linear programming. The result of this paper is choose which tool that make lower implementation cost and higher time reduction.