The Efficiency Improvement of Motorcycle Accessory Part Inventory Management

Abstract

          The efficiency improvement of motorcycle accessory part inventory categorizing purposes based on their value and frequency of consumption from January to December 2021.This study uses the ABC-FSN Matrix to categorize items into groups and selects the AN group, which includes high-value items with low frequency of use. The AN group consists of 9 items valued at 23,389,749 Bath. The researcher applies the EOQ theory to determine the optimal quantity to order and the reorder point (ROP) for the 9 items in the AN group, of which only 2 items have a variance coefficient (VC) less than or equal to 0.25, indicating that they have a constant demand pattern and can be used to calculate the EOQ. This study determines that the 70888FS-21CW item should be ordered in a quantity of 944 pieces per order, with a new reorder point of 173 pieces, safety stock 44 pieces and a reduced frequency of ordering from 3 to 2 times per year, and the average inventory is 593 pieces per year, which is reduced from the current model 1,212 pieces per year. This study also finds that the 60215US-50GL item should be ordered in a quantity of 885 pieces per order, with a new reorder point of 150 pieces, safety stock 49 pieces and a reduced frequency of ordering from 4 to 2 times per year, and the average inventory is 464 pieces per year, which is reduced from the current model 913 pieces per year. The total costs of the current ordering model and the new EOQ model were compared and found that product 70888FS-21CW has a total cost reduction of 1,408,887.08 Baht per year. Product 60215US-50GL has a total cost reduction of 1,104,643.65 Baht per year. Both items enhance inventory management efficiency, resulting in a total cost reduction of 2,513,530.73 Baht per year and representing a 64.72% reduction in cost per year.