DEMAND FORECASTING AND MODERN INVENTORY MANAGEMENT: A CASE STUDY ON AUTOMOTIVE PARTS
Article Sidebar
Main Article Content
Abstract
This research aims to enhance the efficiency of inventory management for a children's car seat parts manufacturing company. The study utilized historical stock and sales data to forecast demand, comparing the effectiveness of the Moving Average method over 4-month and 6-month periods. A comparative analysis revealed that the 6-month Moving Average method yielded the most optimal results for procurement planning. Subsequently, ABC Analysis was applied to systematically categorize all spare parts and components based on their consumption value and usage volume. The analysis segmented the inventory into three primary groups: Group A, comprising 3 items (codes N005, N001, N009), which accounted for 39.96% of the usage volume and a high inventory value of 73.11%; Group B, with 2 items (codes N007, N0012), representing 36.53% of the usage volume and 13.68% of the inventory value; and Group C, consisting of 9 items (codes N0011, N0014, N002, N0013, N003, N006, N004, N0010, N008), which accounted for 23.52% of the usage volume and 13.21% of the inventory value. The findings of this study underscore that the combined application of these two techniques can significantly improve the company's inventory management by facilitating a strategic focus on high-value items, thereby reducing unnecessary costs and enhancing overall operational agility.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The published articles are copyright of the Engineering Journal of Research and Development, The Engineering Institute of Thailand Under H.M. The King's Patronage (EIT).
References
C. Bunterngchit, “Simulation-Based Application in Warehouse Layout Design for Reducing Material Handling”, Kasem Bundit Engineering Journal, (2018), Vol.8, No.3, pp. 1-14, (in Thai).
Godwin, H. Chukwuemeka and Onwurah, “Inventory Management: Pivotal in Effective and Efficient Organizations”, International Journal of Economic Development Research and Investment, (2013), Vol. 2, No. 2.
L. Imeokparia, “Inventory Management System and Performance of Food and Beverages Companies in Nigeria”, IOSR Journal of Mathematics (IOSR-JM) e-ISSN: 2278-5728, (2013), Vol. 6, No. 1, pp. 24-30.
N. To-In, “Demand Planning and Inventory Planning for the Beverage: A Case Study of Hotel Beverage Control Section”, Dhurakij Pundit University, (2013), (in Thai).
M. Martin and A. Iravo, “Effect of Inventory Control Management on Mumias Sugar Retailers’ Satisfaction Level: A Survey of Mumias Sugar Retailers in Kiambu County, Kenya”, International Journal of Academic Research in Business and Social Sciences, (2014), Vol. 4, No. 12.
P. Jarakun and T. Khemthong, “Study of inventory storage process using ABC Analysis principles. Case study of Good Advance Company Limited. Bangkok: Logistics Management Department”, Atthawit Commercial Technology College, (2020), (in Thai).
P. Lalitaporn, “System Planning and Production control” 8th Edition, Technology Promotion Association (Thailand – Japan), (2013), (in Thai).
P. Promngam, "The Improving Effectiveness of Forecasting Consumer Demand. Company Case Study Private Limited", RMUTSB Academic Journal of Science and Technology, (2020), Vol.4, No.2, pp. 24-35, (in Thai).
T. Khluiprasert, and P. Raothanachonkun, "Increasing Efficiency of Warehouse Layout: A Case Study of ABC Company", Sripatum Chonburi Journal, (2023), Vol.19, No.3, pp. 1-16, (in Thai).
T. Miengarrom, W. Leelawan, and W. Utharang, "Time Series Forecasting of Automotive Component Production", Academic Journal of Science and Technology, Dhonburi Rajabhat University, (2023), Vol.1, No.2, pp. 185-200, (in Thai).
T. Tubpond, et al., “Sales Forecasting and Inventory Management of Frozen Giant: Siam Makro Pubilc Company Limited” Thonburi University, (2018), (in Thai).
