General Background: Manufacturing competitiveness depends partly on facility layouts that support efficient material flow and control material handling expenditure. Specific Background: PT XYZ’s steel pipe warehouse has widely separated workstations, creating long movement distances and high daily material handling costs. Knowledge Gap: Previous studies cited in the article primarily compared material movement distances, whereas this study also incorporates overhead crane depreciation, maintenance, electricity, and operator cost components. Aims: The study redesigns the warehouse using Systematic Layout Planning (SLP) assisted by the Computerized Relationship Layout Planning (CORELAP) algorithm, based on existing layout data, facility areas, activity relationships, rectilinear distances, and material handling costs analyzed through ARC, ARD, TCR, and CORELAP. Results: The selected proposal reduced the layout value from 3,933 m² to 1,655 m², total material movement distance from 621.2 m to 233.4 m, and daily material handling cost from IDR 670,527.33 to IDR 192,241.82, producing daily savings of IDR 478,285.51. Novelty: The integrated SLP–CORELAP redesign evaluates both spatial movement and detailed overhead-crane cost components rather than distance alone. Implications: The proposed arrangement provides PT XYZ with a practical basis for shorter workstation travel and lower daily material handling expenditure, while future research should incorporate travel time between workstations. Highlights: Workstation travel fell from 621.2 m to 233.4 m. Daily material-movement expenditure dropped by IDR 478,285.51. The proposed arrangement reduced the layout value from 3,933 m² to 1,655 m². Keywords: Facility Layout, Systematic Layout Planning (SLP), CORELAP, Material Handling, Material Handling Cost.
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