Implementing the Economic Ordering Quantity Principle for Supplier Selection: A Case Study of Building Store

Abstract

This article aimed to study 1) to classify construction materials stores by ABC Analysis, 2) to calculate the economical order quantity in the current order form, and 3) to compare the purchase order quantity. EOQ Discount and EOQ Discount The research model is quantitative research. Use the concept of procurement. Product segmentation (ABC Analysis) and economical ordering concept (EOQ) are the research frameworks. The research area is a building material retailer. The group of informants in the research were 2 entrepreneurs with more than 20 years of experience in selling construction materials. Purposive sampling was used. Data were analyzed using percentage statistics.

The research results were found as follows;

1) The results from the classification of construction materials shop products by using the product grouping method ABC Analysis, it was found that products could be classified into groups A, B, and C, with products in group A having a high percentage of cumulative value, about 70-80 from all product items.

2) The result of calculating the economical ordering quantity in the current ordering model found that the economical ordering amount in the current ordering cost model results in the total cost of ordering group A products equal to 240,744 baht.

3) The Order comparison results, economical order quantities It was found that volume-discounted savings led to lower total inventory costs than traditional orders. 2.45 percent.