Guidelines to Increase Efficiency and Reduce Operating Costs of Shrimp Wholesale Business

Abstract

Educational objective: to be guidelines to increase efficiency of shrimp wholesale business by reducing the employee’s failures, to study guidelines for reducing amount of inventories and out of stock by forecasting, and to reduce operating costs.

The study had divided all problems into 3 aspects: 1) Employee Problem was resolved using motivation, regulation issuance, shrimp size measuring strip for sorting from November 2019 to January 2020. It was found that numbers of wrong size sorting were 23 times, or 25 percent and also found that the wrong size sorting was significantly decreased 16.13% 2) Management Problem was solved by adjusting warehouse area and improving the work processes in delivery process, namely 1) Implementation of ABC warehouse management system. 2) Improving the work processes using the Check Sheet for clear understanding of workers and ensured that product delivery met the customer’s order, enabled finding products easier. The results of improvement were in November 2019 to January 2020, there was only 1 wrong delivery with the damage value decreased of 12,087.2 baht.  3)Cost problems on the cost of ice was resolved by building its own icehouse, resulting in average monthly cost decreased by 67,436 baht per month, with initial investment of 655,000 baht and a payback period of 9 months. For the forecasting, it selected to apply the Approach 3 and 4 provided similar results, namely forecasting by Exponential Smoothing Method at α = 0.4, resulting in total cost decreased by 188,845.46 baht, followed by the Box-Jenkins Approach to ARIMA Model (3,1,1) resulted in total cost decreased by 187,489.98 baht. However, the decreased costs from both approaches were only slightly different.