In the lean principle, there are several waste to be reduced from the manufacturing

process. One of the seven waste is inventory waste which included the material

handling tool. Material handling took 30-75% cost of the production, on the other

hand an optimized material handling system could save the cost around 15-20%.

Therefore, in order to reduce the cost and waste, it is important to know the

optimized material handling system. There are several criteria of a good material

handling system, one of them is the amount of material handling tool.

The research purpose is to know the amount of material handling in a manufacturer.

The current material handling tool that operated was not based on the production

requirement. In other hand, the production system has a lot of station that spread

on different location. Therefore, simulation model will be used to solve this research.

The simulation divided into three different stage based on the current condition.

The simulation objective is to find the highest utilization among all of the amount of

trolley alternatives. However, the highest utilization does not verify that the trolley

could serve the system as good as the current system. Thus, the number of queue

and the queue duration would be defined as the consideration to deterimine the

solution. The alternatives on the simulation developed based on the lead time and

demand of three different condition, the first alternative based on the average

demand, the second alternative based on the maximum demand, and the third

alternative based on the minimum demand. The result of the simulation is the

number of trolley for stage 1 is 170 trolley, stage 2 is 154 trolley and it was based

on the first alternative. While for the stage 3 is 126 trolleys, and based on the

second alternative.