Warehouse Allocation Problem Of A Coffee Manufacturing Company
Abstract
Warehouse operation and design plays a vital role in the entire supply chain
system. In order to solve warehouse related problems, either technological solutions or
mathematical model could be used. In those years, the company has faced some
difficulty in warehouse allocation. This study aims to address the stock allocation
problem as well as minimize the total operation cost created by stock-in, stock-out in the
warehouse and the extra cost of hiring outsourcing warehouse. The mathematical model
is implemented by CPLEX. The result is obtained by running the mathematical model
implied realistic collected data from the company. Economic and environment impacts
are also evaluated in the paper.