Analysis of Inventory Management Practices using ABC and EOQ Models A Case Study of Thailand’s Cleaning Supplies Company

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Over the past few years, the outbreak of the COVID-19 virus epidemic has resulted in a significant surge in the demand for cleaning products. Many companies have broadened their operations to include the sale of these products, including the organization examined in this case study. The study aims to assist the company in optimizing its inventory control to minimize expenses by utilizing two widely used inventory management methods: ABC Analysis and EOQ Model. The first step in this process is to categorize the inventory into three groups (A, B, and C) based on its importance. The study then focuses on group A inventory items, analyzing each to determine the optimal order quantity. It also evaluates the possibility of replacing the current order quantity with the optimal order quantity and presents an approach for ordering all inventory at the ideal order quantity to reduce costs. According to the findings, ordering all items at the optimum order quantity would result in a 34% reduction in inventory expenses. Overall, this study provides a useful framework for businesses seeking to improve inventory control and decrease costs.