Journal of Supply Chain Management: Research & Practice Vol. 11, No. 1 (June 2017)
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ItemApplying an EOQ model to reduce an inventory cost(Assumption University Press, 2017)This research study applies an EOQ model (Economic Order Quantity) to reduce an inventory cost. The focus ABC Company is a Beer Importer in Thailand. It faced the problem of high inventory cost and lackluster inventory management. The root cause was that the Company had no standardized ordering process, which meant a high cost of carrying excess inventory, or having too little to meet demand. It also meant paying a high storage charge. The EOQ Model was proposed, to make substantial improvements. Historical inventory stock data for years 2014 and 2015 shows that the ABC Company had low stock at the end of 2014, which meant the company was not able to fulfill customer demand. Conversely, it had excess stock at the end of 2015 which increased the carrying cost until the product moved from the warehouse (the internal supply chain) on to customers in the external supply chain. The researchers collected historical data from June 2015 to May 2016 (twelve months) to compute and simulate in the EOQ model, thus identifying the re-order point and safety stock, in order to find the optimal order quantity for inventory. This enabled the identification of appropriate inventory levels and buffer stock until arrival of the next shipment. The driving objective of this research was to gain cost savings through an efficient inventory management system. After simulation with the EOQ model, the result indicates that the ABC Company can accomplish cost savings amounting to 50% of the old annual inventory cost. Therefore, the ABC Company should implement the tested EOQ model and its re-order points, to achieve the ultimate aim of improving customer satisfaction, through buying the optimal order quantity, achieving appropriate inventory levels, and minimizing inventory cost.
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ItemImproving vehicle tracking in a holding carpark(Assumption University Press, 2017)This research was conducted to improve the operation of a parking area for vehicles waiting for export, and reduce the cost of management fees, through implementation of a barcode system. Barcoding is an automated identification system which is powerful technology and applied in many fields. A barcode system was designed and tested to see if it could solve the parking problem. The focus company in this research manufactures vehicles in Thailand for export. Its internal operations are very good, but identifying where each vehicle is in the special parking area awaiting export was rudimentary. To begin to solve this problem, all relevant data was collated, such as the current ABC Company information and operation, historical data of cost, company volume, and the parking problem. All this was analyzed so as to develop a new and improved parking process. To implement the barcode system, ABC Company had to invest in equipment and software. The Company also modified the parking area by installing stud bars on the ground. Calculation of the Net Present Value of the returns from this project shows that the investment is valuable to the organization. When all the improvements were finished and applied, the researcher compared the ole operation with the new operation, concerning the process and cost. The results of implementing the barcode system not only solved the problem but also improved the vehicle export operation process. This project eliminates non-value added activities and enhances the skill of manpower. Communication inside and outside the Company is easier, accurate, and reliable. All concerned parties quickly dealt with urgent issues. The Company's supply chain is more efficient and effective than before. The Company reduces costs, gains advantage over its competitors and improves collaboration with its partners.