THE ANALYSIS OPTIMAL ORDER QUANTITY FOR CARTON BOX CASE STUDY ABC COOPERATIVE LIMITED

Abstract

        The objective of this research is to study an inventory management for ABC Cooperative Limited. At the present, purchasing lacks of a good system and inappropriate calculation method of ordering quantity. Mostly they have a problem either overstock which increases the company’s cost. The purpose of this research is to analyze order quantity of materials control inventory policy in company in case of products requirement, ordering cost and holding cost for developing inventory strategy. Thus, this research is to study Continuous Review System (s, Q*) to compare between the present policy and new policy that is the lowest cost. The regularly demand which is 11 raw materials in 2016 - 2017 is tested to find distribution and variability of a demand. Then there are analyze Economic order quantity, safety stock, and reorder point.
The result of this research when there are compare between the present policy and 2 news policies on January 2018 – November 2018 found that (s, Q*) policy has lower total cost than present policy which is 54,224.51 Baht or 51.10 %.