INVENTORY MANAGEMENT CASE STUDY OF FIRE PROTECTION SYSTEMS COMPANY

Abstract

This research is proposed to inventory management in case study of a company that installs fire suppression systems in buildings. From the stock count at the end of June 2021, it has been found that the company had 240 items of inventory, with a total value of approximately 680,626 Baht. The problem of inventory value is higher than demand by about 71% and also physical problems it is found that the condition of the inventory is not categorized, making the placement of the products is not the exact placement, which is not conducive to vision and then make it is difficult to find products and repeated purchases occur frequently. Therefore, the ABC Analysis theory is applied to categorize inventory by product value condition. Thus, they can be able to define product category A with total 24 products, category B product with 79 items, and category C with 137 products. And applying product group A is with the highest product value. Let's analyze and solve problems by forecasting the demand of products per month, determination of minimum, maximum, and procurement cycle times and suitable purchasing quantity including the analysis of non-circulating items. By creating a formula is for calculating with Microsoft Excel. The results of a study in product group A is found a number of non-circulating products of 8 items, which applies the strategy to allows the sales department to offer these items to customers in order to drain the products. And products that must be purchased to suit the quantity of demand of 22 items. In addition, new warehouse design principles have been applied for making the product tidy. Then products are stored in categories, the storage area is clearly divided, and assign staff aisle to make it easy and quick to check the stock available in the warehouse including convenient picking (Picking).  Therefore, after the operation of inventory costs can be reduced by 184,227 Baht or an average reduction of 27%.