Optimizing Spare Parts Inventory and Warehouse Layout at PT XYZ Using ABC Analysis

Abstract

Background: Spare parts warehouse management in the manufacturing industry often faces challenges owing to unstructured organization, where high-value and low-value items are frequently mixed. This condition is prevalent at PT XYZ, a refined sugar company, leading to operational inefficiencies and prolonged search times owing to the lack of a clear classification system.
Purpose: This study aims to analyze inventory control at PT XYZ using Activity-Based Classification (ABC Analysis) to classify spare parts and design a proposed physical warehouse layout to enhance operational efficiency.
Design/methodology/approach:This research employs a quantitative descriptive approach to analyze 94 spare part items. Annual usage data were evaluated using the ABC analysis method to categorize items into A, B, and C groups based on their cumulative value. Following this classification, a proposed warehouse layout was designed to optimize spare-part placement according to their priority levels.
Results: The inventory was categorized into three groups based on cost contribution: Group A accounted for 78.8%, Group B for 15%, and Group C for 5%. The proposed layout strategically positions Group A near the warehouse entrance for rapid access, places Group B on the middle shelf, and allocates Group C to the rear area for space optimization. This systematic arrangement significantly minimizes retrieval time and mitigates the risk of damage to high-value assets in the warehouse.
Conclusion: The application of the ABC analysis at PT XYZ has proven effective in classifying 94 spare part items to optimize inventory control based on investment value. The implementation of a new systematic warehouse layout has the potential to enhance operational efficiency and reduce item retrieval time. To ensure the sustainability of the system, companies should consistently carry out warehouse restructuring, provide inventory management training for employees, and conduct periodic evaluations to ensure that inventory management remains adaptive to operational requirements.
Originality/value: The novelty of this research lies in the integration of ABC economic value analysis with systematic physical layout design, specifically within a refined sugar industry spare parts warehouse, to reduce operational costs. These results provide a guide for warehouse managers in decision-making regarding storage allocation and monitoring priorities, ultimately reducing machine downtime caused by delays in spare part availability. This strategy enables the company to optimize its working capital through more precise inventory control of Category A items.

Keywords: ABC analysis, warehouse layout, spare parts management, operational efficiency, refined sugar industry