Philippine E-Journals

Service Allocation for Inbound Logistics using System Generated Software

Ronald Joshua Salvador | Darryl Villanueva | Tracy Roi Olanda

 

Abstract:

Warehousing is the act of storing goods that will be sold or distributed later. Larger businesses typically own or rent space in a building that is specifically designed for storage. The target of this study are the automotive companies in selected areas in Laguna. Form Asia Auto Carpet Inc. was the host company where the researchers observed and gathered data to accomplish this study. RTD warehousing service LTD, the proposed enterprise, will introduce inbound logistics using system generated software to supply services of providing a new warehouse for inbound that is connected to the current warehouse. The inbound logistics is using system generated software that can monitor the safety, accountability, and quality of raw materials while they are stored in another warehouse. The market study done by the researchers showed that there were many automotive manufacturing companies in the area that needed to expand their warehouse. Posting on tsocial media, using flyers, posters and calling cards shall be the main marketing strategies of the RTD warehouse service LTD to promote the products to the consumers. The enterprise will be the sole manufacturer and distributor of the product at an affordable price of P ®539.27 per pallet The project has a projected demand of 126,761.49 pallets in 2019 in selected areas and it will increase to 149,320.04 pallets in 2023. Based on the projected annual supply from 2019-2023, the unsatisfied demand of the proposed product from 2019 to 2023 is 54,025 to 71,575, with 93% market share in the first year of operation to 70.82% market share in the fifth year. To start the proposed project, the researchers will need ® 17,998,652.55 of investment capital which will be divided equally among the proponents from their personal savings. In the first year of operation, the proposed project will have a net income of ®5,904,935.18 and the net incomes for the remaining years until the fifth year will be 1406,634,482.32, ®7,097,374.26, ®7,583,594.97 and ®8,090,303.20 respectively. The proposed enterprise shall be responsible for direct supervision of operation and management and shall abide with all the rules and regulations that are implemented by the local government. The company shall minimize and maximize waste disposal and shall formulate and implement a solid waste management program and safety program for the employees. The researchers concluded that the project proposal is feasible and will be a good investment. Using service allocation for inbound logistics using system generated software, the project has a market share that is favorable in the locale because the selling cost is cheaper than the competitors. This will also provide employment and help the clients by providing warehouse extension. The researchers recommended that further research be conducted on this study to innovate the service more.