Guidelines to Increase Efficiency of Inventory management Case Study of ABC Company Limited

Abstract

The purpose of research is to study how to improve the inventory management efficiency of ABC Company Limited of the survey and collecting relevant information, it was found that the reason that the company's operations are inefficient is the high volume of inventory and distribution of goods has cost of redundant transportation and lost products from the product return process, each problem has guidelines and study results as follows. The inventory quantities are predicted using the method of a moving average, take the forecast results to calculate the economical order quantities and the appropriate new ordering points for each product type. In order to set the inventory management policy found able to reduce inventory costs in the amount of 261,695 baht per year, equivalent to 29.87%. The freight side has an improved approach is change the distribution model by canceling sub-warehouses and using direct delivery to salespeople and determine the amount of products that salespeople should store. From the study by using the simulation model and the route arrangement by Saving Algorithm will cause the total cost to be reduced from 63,327.30 baht / month to 16,971.00 baht / month, equivalent to 73.20%. The lost products from the return process, work procedures were improved and work was arranged to suit the duties. An increase return standards by adding return documents and attaching barcode codes. From data collection after the update from January to February 2020 for 2 months, found that the average product pick-up time can be reduced from 8 days to 1 day and the data error ratio decreased from 8% to 0.26%, no product lost due to product return occurred. In case of problems, errors and causes of the problems can be investigated more easily and quickly.