TY - JOUR
AU - Itthisathienkul, Pannida
AU - Amaruchkul, Kannapha
PY - 2021/06/15
Y2 - 2024/09/17
TI - Product Pooling for Cartons packaging Materials and Can Order Policy for Scotch Tapes: Case Study of the Instant Noodle Manufacturing Company in Thailand
JF - Journal of Applied Statistics and Information Technology
JA - ASIT J.
VL - 6
IS - 1
SE - Research Articles
DO -
UR - https://ph02.tci-thaijo.org/index.php/asit-journal/article/view/242265
SP - 37-51
AB - <p>In this case study, the company faces difficulties in managing inventory of packaging materials: Boxes are large and bulky, so the warehouse capacity is reached. This study aims to propose a new inventory policy to reduce the storage area and reduce the inventory cost. Nine types of boxes and one type of scotch tape are considered. Their demand type is identified, and an appropriate inventory policy is constructed based on demand forecast from 2017-2018 historical data. The proposed policies are applied to the actual demand in 2019. In the first policy, the number of items remains the same, but the new reorder points are calculated. In the second policy, all nine box types of boxes are pooled together, reducing the number of types. Specifically, for the Policy 1, the continuous review system is implemented for boxes, whereas the periodic review system is implemented for scotch tape. The order quantities for boxes are calculated based on either the EOQ model or the dynamic lot sizing model. For the Policy 2, two common boxes are used, and their order quantities are calculated based on the EOQ model. Different colors of scotch tape are used in differentiate different taste of the finished goods. Scotch tapes with nine colors are managed using the can-order policy. The result reveals that under Policy 1, the average number of pallets stored in the warehouse increases by 17 patters, the average total cost decreases by 89,151.40 THB/year, and the fill rate is equal to 99.3%. Under Policy 2, the average number of pallets decreases by 24 patters, the average total cost decreases by 2,352,197.91 THB/year, and the fill rate is 97.5%. Both policies lead to savings in inventory cost. Nevertheless, Policy2 is more suitable than Policy1, since it reduces the warehouse space, and the cost saving is significant.</p>
ER -