INVENTORY CONTROL AND STORAGE PLANNING: CASE STUDY OF AAA PARTNERSHIP

Abstract

Due to the growth of tractor spare parts industry and the intensified competition, the idea of relocating a manufacturer to a new location to make the operation in this new warehouse become more efficient as much as possible was introduced. This research had two main purposes as follows: 1) To manage inventory and 2) to design a warehouse layout to respond to customers' needs in the future and bring the cost to the lowest by placing the appropriate order quantity in each item and design the appropriate warehouse storage layout accordingly. The results of the study found that determining the order quantity using POQ theory can reduce inventory management costs compared to a traditional method of placing unstructured orders which costed 21,156,300.00 baht or 93.77%.  In addition, the researcher also designed three new inventory layouts, each of which gave an average displacement of 5,439 meters. Therefore, from this present study, the third layout was chosen with the shortest distance of 5,183 meters.