DEMAND FORECASTING AND INVENTORY MANAGEMENT: A CASE STUDY OF AUTOMOTIVE PARTS MANUFACTURING COMPANY

Abstract

This research is the design of demand forecasting techniques, ABC Classification theory analysis of an automotive company in Chonburi in order to optimize inventory management. There are two objectives which are analyzing the technique of forecasting the demand of suitable automotive parts for Class A products and examining the production order quantity control and new production order point to reduce the carrying cost and the storage cost of the goods. The research results found that there are 13 products out of 79 of suitable auto parts for Class A products-and production order and new production order point can reduce the total cost up to 215,746.04 baht per year from the original value 820,387 baht per year. The reduce total expenses by 30%.