Proceedings of ICLT 2023

INVENTORY MANAGEMENT AND PRODUCT DEMAND PLANNING: CASE STUDY BAKERY PRODUCT FACTORY

Korrakot Y. Tippayawong; Saimock Duangchan; Pattareeya Yothin; Prim Fongsamootr

Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand; Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand; Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand; Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand

International Conference on Logistics & Transport 2023, Helsinki, Finland, pp. 154-161

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Abstract

Purpose: AMZAP Group Company Limited is engaged in the agricultural product processing business, focusing on food preservation and bakery products. Among its product portfolio, the Memorize brownie has gained widespread recognition. The company recognizes the need to enhance and optimize its factory and store inventory efficiency to serve the market's demands effectively. The lack of accurate knowledge regarding the appropriate quantities and timings for deliveries has resulted in instances of raw material shortages or excessive ordering, leading to lost customers and unnecessary costs. To address these challenges, the company has embarked on a research project to improve its inventory system, including the raw material and ready-made goods inventory. The project aims to facilitate efficient inventory checks, integrating forecasting theory to anticipate demand quantities for each branch accurately. Design/methodology/approach: This study adopts a comprehensive analytical approach, integrating the principles of Design and Plant Layout, Inventory Management, Production Planning, and Scheduling Theory. To optimize and determine the factory inventory layout, Economic Order Quantity (EOQ), and Reorder Point (ROP) for raw materials and ready-made goods within the inventory, a range of tools are employed, including ABC Classification analysis, Rectilinear, FIFO, and FEFO principles. Additionally, Microsoft Excel analyzes sales history and forecasts future plans. Findings: The outcomes of this study comprise comprehensive delivery plans for each branch based on sales forecast data analysis. Furthermore, the study provides two inventory layout diagrams, offering practical guidance to the company's operational endeavors. Research limitations/implications: In order to gather relevant data for analysis, this study collects information from five branches, namely AQUA, Ladprao, Ayutthaya, Central Festival Chiang Mai, and Nimmanhaemin, focusing on three key products: Brownie Shot,

Keywords

Keywords: Inventory Management; Demand Forecasting and Planning; Bakery Product

Citation

Korrakot Y. Tippayawong; Saimock Duangchan; Pattareeya Yothin; Prim Fongsamootr (2023). INVENTORY MANAGEMENT AND PRODUCT DEMAND PLANNING: CASE STUDY BAKERY PRODUCT FACTORY. Proceedings of the International Conference on Logistics & Transport (ICLT 2023), Helsinki, Finland, pp. 154-161.