PT Graha Kerindo Utama is a company which is producing tissue. The main problem is the company's warehouse capacity has been used up completely so it will potentially hinder the company if it wants to increase the inventory in the warehouse through innovation creates new products and additional production capacity.

Method Used:
The method which is used to increase the warehouse capacity is by using a racking system.


Summary of Finding, Conclusion, and Recommendations:
Variants of the products and the great quantity of each variant, make the company,s warehouse is not enough to accomodate all of its production. By using drive-in/drive-through rach system, than the total warehouse capacity of finished goods incrased by 6A,9% from ll0.000 to 176.940 cartons. For a suitable material handling with racking system and warehouse conditions is using counterbalance truck.