GUIDELINES FOR REDUCING INVENTORY MANAGEMENT COST WITH ECONOMIC ORDER QUATITY CASE STUDY: BOXPACKAGING PRODUCT

Abstract

The objective of this study was to determine the appropriate order quantity of box packaging products. and for guidelines to reduce inventory management costs of case study company. from the study and preliminary data analysis it was found that have a product of box packaging products all 12 type. The quantity of the ordered products is greater than the quantity of the demand actual products. There is a large amount of inventory at the end of the period. As a result, the cost of storing products is high. Including there was no pattern of ordering. Based on such problems, the study authors therefore have an idea to apply the principle of economic order quantity analysis and to be a method for reducing the storage costs of such products. The operation steps are as follows: 1) Literature review and Product information study, 2) analyze data, 3) formulate corrective guidelines, and 4) summarize results. The apply of principles economic order quantity analysis. It consists of calculation the economic order quantity, Calculating for Safety stock, Recalculation the reorder point, Calculation order cost, Calculation storage cost and Calculation the total cost of management inventory. The results of using the applied principle of economic order quantity. shows that inventory management cost is reduced from 23,316.62 baht per year to 12,944.34 baht per year. The total cost decrease of 10,372.28 baht per year, or 44.48 percent.