THE EFFICIENCY DEVELOPMENT OF INVENTORY MANAGEMENT OF A CONSTRUCTION MATERIAL STORE IN PATHUM THANI
Abstract— Improving the efficiency of inventory management of a Construction Material Store in Pathum Thani was to study the inventory management process and propose to improve the inventory management process to be more efficient. This study had explored and collected data related to the inventory management process. It found that because the shop did not plan to order products, caused the stock to be stocked with large quantities affecting the storage cost. Therefore, ABC analysis theory and Economic Order Quantity (EOQ) were used to improve efficiency of inventory management process and increase the ability to control inventory levels to meet the needs of customers.
The result showed that there were 721 product lists were divided into 3 types of inventory groups: A, B, and C. There were 126 items of A group, 243 of B group, and 352 items of C group. In addition, new orders are systematically planned, and cost savings were greatly improved by reducing inventory cost of A Group by 75% per quarter, B Group by 55% per quarter, and total cost by 62% per quarter.