This research aims to design a new warehouse layout at Alfamart with a dedicated storage method to increase material storage capacity. The instrument cluster assembly process at Alfamart is very dependent on the smooth supply of materials. The increase in production capacity from 2,500 units/day to 3,000 units/day in 2021 causes a larger need for storage space. The main problem identified is the limitation of the material placement area in the old warehouse. In this study, an analysis was carried out on the types of goods placement policies and optimal facility layout. The research method used is a combination of literature study and data collection from the research site. The results of the analysis show that the new layout design can increase the storage capacity up to 30%, from 240 pallets to 312 pallets. The new layout not only improves the placement of goods, but also increases operational efficiency through wider lanes, clear zoning systems, and better lighting. Thus, this research makes a significant contribution to warehouse management at Alfamart, ensuring that all materials can be stored and accessed in accordance with the established standards.