Increasing the Efficiency of Inventory Management: A Case Study of Package Design Company Limited

Abstract

Package Design Company Limited is a manufacturer and supplier of paper packaging for more than 800 items. According to case study of the Package Design Company has many types of raw materials separated into many SKUs according to the purpose of use, resulting in having many suppliers in addition. the orders of inventory based on the experience of the company owner currently, raw materials that affects to level are more than necessary, some raw materials moreover, are not enough to produce and resulting in loss of production opportunities.

Therefore, this study of the efficiency of inventory management improvement, the case study of Package Design Company Limited, aims to study forecasting techniques with smallest mistake. and reduce inventory costs. In planning the quantity of products ordered per year, including of calculating the economic order quantity and calculating reorder points to reduce the cost of each order and storage cost. The test results show that the exponential smoothing prediction technique is an appropriate method. Then, the forecasted demand for products in 2020 will be calculated for economic order quantity to determine the quantity of orders per transaction, resulting in the cost of purchasing all 8 items reduced by a total of 1,226,177 baht per year.