FINISHED GOODS MANAGEMENT IN THE CASE OF THAI AIR CONDITIONER MANUFACTURING COMPANY
Keywords:
inventory management, Economic order quantity (EOQ), Reorder point (ROP)Abstract
The inventory management system has an important role to check the condition and volume of goods in supply chain system. The objective of this study is to reduce the loss caused by the volume of finished goods in the warehouse are excess of customer demand. The air conditioner factory is used to be a case study. Economic order quantity (EOQ) and Reorder point (ROP) are applied to manage inventory for the air conditioner factory. Statistical data of customer requirements and production data are used to calculate the point that the air conditioner will start to produce and the quantity of product for fill to the warehouse. Four weeks are used to implement for inventory management system design. Results of this study show that the average of finished goods produced for sale exceeded demand from the first week is 42 percent then reduced to 7 percent in the 4th week of this study. It implies that the losses of this system also reduce. The details and limitations of this research are also discussed.
References
Harris, F. W. (1913). How many parts to make at once, Factory. The Magazine of Management, 10(2), 135–136, 152.
Grewal, C. S., Enns, S. T., & Rogers, P. (2015). Dynamic reorder point replenishment strategies for a capacitated supply chain with seasonal demand. Computers & Industrial Engineering, 80, 97-110.
Wang, C. H. (2010). Some remarks on an optimal order quantity and reorder point when supply and demand are uncertain. Computers & Industrial Engineering, 58(4), 809-813.
Mebarki, N., & Shahzad, A. (2013). Correlation among tardiness-based measures for scheduling using priority dispatching rules. International Journal of Production Research, 51(12), 3688-3697.
Wu, K. S., Ouyang, L. Y., & Yang, C. T. (2006). An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging. International Journal of Production Economics, 101(2), 369-384.
Krommyda, I. P., Skouri, K., & Konstantaras, I. (2015). Optimal ordering quantities for substitutable products with stock-dependent demand. Applied Mathematical Modelling, 39(1), 147-164.
Lu, L., Zhang, J., & Tang, W. (2016). Optimal dynamic pricing and replenishment policy for perishable items with inventory-level-dependent demand. International Journal of Systems Science, 47(6), 1480-1494.
Mishra, U., Cárdenas-Barrón, L. E., Tiwari, S., Shaikh, A. A., & Treviño-Garza, G. (2017). An inventory model under price and stock dependent demand for controllable deterioration rate with shortages and preservation technology investment. Annals of operations research, 254(1), 165-190.
Jaggi, C. K., Gupta, M., Kausar, A., & Tiwari, S. (2019). Inventory and credit decisions for deteriorating items with displayed stock dependent demand in two-echelon supply chain using Stackelberg and Nash equilibrium solution. Annals of Operations Research, 274(1), 309-329
Chen, X., Benjaafar, S., & Elomri, A. (2013). The carbon-constrained EOQ. Operations Research Letters, 41(2), 172-179.
Hasan, M. R., Roy, T. C., Daryanto, Y., & Wee, H. M. (2021). Optimizing inventory level and technology investment under a carbon tax, cap-and-trade and strict carbon limit regulations. Sustainable Production and Consumption, 25, 604-621.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
