Waste Reduction in Inventory Storage Process: A Case Study of Manufacturer and Distributor of Wooden Doors in Roi-Et Province
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Abstract
The increase of an inventory turnover ratio plays a significant role in an inventory carrying cost reduction by a waste reduction method in an inventory storage process. This research’s objective is to study wastes and increase the inventory turnover ratio through reducing waste from the inventory storage process. The information has gathered from 15 key informants by using participant observation, in-depth interview, and focus group methods.The data were analyzed by integrated definition for function modeling type 0 (IDEF0), value of activity analysis, inventory turnover ratio, average sale period as well as inventory carrying cost. When reducing waste from the inventory storage process to increasing the inventory turnover ratio and decreasing the inventory carrying cost, the research has indicated that the inventory turnover ratio has raised up from 0.57 times to 0.74 times while the average sale period has diminished from 635 days to 493 days. Thus, it led to decreasing the inventory carrying cost from 2,754,585 baht to 2,007,715 baht. In conclusion, the researcher advises entrepreneurs to pay attention to reducing the inventory storage process’s waste through a simple approach that is uncomplicated to communicate to employees as follows: improving the process by ECRS, setting a performance standard, and applying a computer system technology to collect and analyze inventory data for higher levels of the inventory turnover ratio, which will further benefit the manufacturer and distributor of wooden doors.
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The articles published in the journals are the authors' opinions, not the opinion of the editorial team or administrative staff. The articles published is copyright of the Journal of Business Administration and Accounting, Khon Kaen University.
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