<![CDATA[This research was conducted at PT AHS, a food-grade salt manufacturing company with reverse osmosis technology, producing 23 tons per hour or 500 tons per day. Its factory warehouse has a capacity of 1,752 tons. Therefore, at its maximum capacity, the warehouse can only hold approximately three days' worth of inventory, making it highly susceptible to overcapacity. This study aims to evaluate the effectiveness of the combination of ABC Analysis Class-Based Storage and Time-Driven Activity-Based Management (TDABM) in warehouse optimization. ABC Analysis classifies products into fast-moving, medium-moving, and slow-moving classes based on throughput, which is used to design storage layouts. The results showed that 18% of product categories in the medium-moving and slow-moving classes must be moved to external warehouses if the factory warehouse capacity is met by 71%. with a storage tolerance of 1 day of production results. Meanwhile, TDABM is used to analyze the time and cost of operational activities so that the value of the Capacity Cost Rate (CCR) of warehouse activities is Rp 772.67/minute with a total handling cost of Rp 6,791.77 per pallet. A bottleneck was found in the receiving process that has the potential to cause Unused Capacity Cost of Rp 119,507,843/year. This research demonstrates that combining ABC Analysis and a Class-Based Storage System is not only effective for physical layout planning but can also be enhanced using Time-Driven Activity-Based Management (TDABM). This provides a new perspective that space efficiency must go hand in hand with time and activity cost efficiency.]]>
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