Analysis and Improvement of Inventory Management Using the Economic Order Quantity Concept: A Case Study of a Gadget Import Company
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Abstract
This research is the analysis and improvement of inventory management using the economic order quantity concept. It is a case study of a gadget import company’s purpose, aiming to 1) reduce inventory maintenance costs, 2) reduce transportation costs, and 3) improve inventory management efficiency. This research is an analytical and business process improvement study using a gadget import company as a case study, selected through purposive sampling. The data collection tool was a daily sales volume and related cost recording form from January 1 to October 13, 2024. The data were analyzed using a mathematical model based on the Economic Order Quantity (EOQ) theory and comparative cost analysis. The research findings revealed that 1) the application of the EOQ model could significantly reduce total inventory management costs, saving 1,113,970.24 baht; 2) transportation costs decreased significantly, totaling 1,600,000 baht; and 3) the organization should evaluate the adequacy of existing inventory storage space and analyze the comparative total costs between using EOQ and traditional methods. If space is insufficient, the organization should consider the costs of acquiring additional space to assess the feasibility of sustainable implementation.
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