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

บทคัดย่อ

Over the past few years, the outbreak of the COVID-19 virus epidemic has led to a significant surge in the demand for cleaning products. Many companies have expanded their operations to include the sale of these products, including the organization examined in this case study. The case study for this research involves the procurement of cleaning items, maintaining a stock, and subsequently selling them to consumers. The diverse range of cleaning and COVID-19 related products has considerably increased the complexity of managing the inventory in this case study. This wide variety has resulted in higher and unnecessary inventory costs. Therefore, the objective of this study is to guide the company in minimizing inventory costs by utilizing two widely used inventory management methods: ABC Analysis and the EOQ Model. The initial step in this process is to categorize the inventory into three groups (A, B, and C) based on their importance. The study then focuses on the inventory items in group A, analyzing each to determine the optimal order quantity. Through the combination of these two methods, the inventory management of the case study is optimized. Items with high demand and value can be adequately stocked (based on ABC Analysis), while the EOQ Model ensures that the quantities ordered for items in category A are aligned with the goal of minimizing overall inventory costs. According to the findings, placing orders for all items at their optimum order quantity would lead to a 34% reduction in inventory expenses. Overall, this study provides a useful framework for businesses aiming to enhance inventory control and reduce costs.