Application of ABC classification analysis technique for inventory management of food categories : A case study XYZ department store
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Abstract
The objective of the study was to prioritize the consumer inventory of food categories in dry food products and food seasoning, such as spices, seasoning, and condiments, for improving efficiency in storing and counting, a case study of XYZ Department Store. The ABC classification analysis technique was applied to arrange and classify the products of 212 items. The results revealed that group A had the highest of sales value, and the disbursement rate showed 14 items as 6.60% of total products. The food categories in group A, such as rice, palm oil and sauces, had the sales value of 79.10% or 17,062,773 baht out of 21,549,895 baht of total value. These products should be stored close to the entrance of the warehouse. Group B had the second highest sale value, with 32 products, resulting in 15.09% of the total product items. These products had a sales value of 15.61% or a value of 3,364,711 baht with a moderate disbursement rate. Group C showed the least sales value which had the largest number of products at 116, representing 78.30% of the total product items. However, the products in group C had sales value of 5.20% of all sales value, or 1,122,410 baht. Therefore, the application of ABC classification analysis technique for inventory management of food categories can lead to the establishment of effective inventory management policy.
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