Redesigning the New Warehouse Layout of PT SOCI Mas Using the Systematic Layout Planning Method

Abstract

PT SOCI Mas, a major oleochemical company in Indonesia, requires improved warehouse efficiency due to production expansion and continuous process operations. The current double deep racking system limits storage accessibility and increases material handling costs (MHC). This study aims to redesign the warehouse layout using shuttle racking technology and the Systematic Layout Planning (SLP) method. Data were collected through observation, interviews, and analysis of warehouse operations, followed by layout evaluation with Activity Relationship Charts (ARC). The proposed layout was evaluated against the existing layout using four measurable indicators: material travel distance, labor requirement, equipment usage, and annual material handling cost (MHC). Results show that the proposed layout reduces material travel distance by 986,580 meters (5%), decreases equipment from nine to six units, and lowers labor needs from 44 to 25 workers. These changes generate an estimated annual cost saving of $287,737, derived from reduced MHC, labor, and equipment costs; as the proposed layout has not yet been implemented, this figure should be read as a projected rather than a realized saving. The findings indicate the potential of combining modern racking systems with SLP to improve operational efficiency and cost-effectiveness in continuous-process industries, pending validation through full-scale implementation.