P PT. VSL Jaya Indonesia is a company engaged in construction services. Theproblem is in the raw material warehouse and finished goods warehouse in thestorage of raw materials, components purchased from outside and finished goods.In the raw material warehouse, the placement is often random and also storescomponents imported from outside which will later join the finished goodsproduced at the time of delivery. Component requirements must be matched withthe number of items to be sent to the project. In the finished goods warehouse, theplacement is not grouped, causing difficulty in finding and hampering the retrievalprocess. In addition, the total displacement distance is large and material handlingcosts are high. This study aims to provide suggestions for improving the layout ofthe raw material warehouse and finished goods warehouse using dedicated storageand class based storage methods and determine the best layout based on the criteriafor the total distance of movement and the smallest material handling cost. Thestage begins with evaluating the initial layout by calculating the total displacementdistance, the results are 14532.07 m per month and material handling costs are Rp.7,527,612 per month. The results of the improvement in the layout of the dedicatedstorage method experienced a percentage decrease of 17%. Meanwhile, the classbased storage method experienced a decrease in percentage greater than thededicated storage method, which was 28%. So that the proposed improvement usesthe selected class-based storage method. The application of the selected warehouselayout will make the process of finding goods and retrieval of goods easy becausethe storage of goods is based on project classification.