Proceedings of ICLT 2025
DEVELOPMENT OF RAW MATERIAL INVENTORY MANAGEMENT SYSTEM FOR CARTON BOX MANUFACTURING FACTORY
Salinee Santiteerakul; Apiwat Srisook; Alonggot Limcharoen Kaeochotchuangkul
Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Chiang Mai, Thailand; Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Chiang Mai, Thailand; Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Chiang Mai, Thailand
International Conference on Logistics & Transport 2025, Tokyo, Japan, pp. 113-120
Download PDF | View interactive page
Abstract
Purpose: This research focuses on improving the raw material process to enhance the inventory management system of a carton box manufacturing factory located in Wang Noi Subdistrict, Wang Noi District, Ayutthaya Province. The study analyzed 109 Stock Keeping Units (SKUs) from 2011 to 2022, aiming to prevent both material shortages and excess stock, which were primarily caused by inefficient order management and consequently increased overall costs. Design/methodology/approach: Inventory management principles were applied to analyze ordering and holding costs. The raw materials were classified using ABC analysis and further evaluated with the Peterson-Silver rule by examining the coefficient of variation (VC) for each SKU. Raw materials with stable demand were managed using the Economic Order Quantity (EOQ) model, while those with fluctuating demand were handled using the Silver-Meal and Lot-for-Lot (LFL) methods. Additionally, safety stock levels and reorder points were determined for critical A and B category items. Microsoft Excel’s VBA (Visual Basic for Applications) was also employed to develop a system that manages procurement schedules and records raw material inflows and outflows, thereby improving both data accuracy and efficiency. Findings: The results showed a significant reduction in total inventory management costs. In 2021, total costs decreased from 210,093.63 Thai Baht to 96,419.75 Thai Baht, a reduction of 54.11%. In 2022, costs were reduced from 217,371.01 Th
Keywords
Inventory Management; Economic Order Quantity; Silver-Meal; Least Unit Cost; Lot-for- Lot; Visual Basic
Citation
Salinee Santiteerakul; Apiwat Srisook; Alonggot Limcharoen Kaeochotchuangkul (2025). DEVELOPMENT OF RAW MATERIAL INVENTORY MANAGEMENT SYSTEM FOR CARTON BOX MANUFACTURING FACTORY. Proceedings of the International Conference on Logistics & Transport (ICLT 2025), Tokyo, Japan, pp. 113-120.