Improving the Inventory Storage Process with ABC Analysis for Increase Storage Management Efficiency: The Case of XYZ Co., Ltd.

Abstract

This research aims 1) to improve the storage process with ABC analysis that affects the warehouse's storage management efficiency. 2) To optimize inventory processes with ABC analysis of the warehouse's storage management efficiency. 3) To study how to optimize the storage process with ABC analysis that effect the XYZ Co., Ltd warehouse storage management efficiency, by grouping according to the amount of movement which has high, medium, and low turnover of goods in and out of the warehouse, respectively. This research used mixed methods between action research and quantitative research. The population used in the simulation operation and the research questionnaire were 92 employees. After improvement with the ABC analysis, the research results found that in terms of time reduction. The time can be reduced to 80 minutes from 110 minutes or 27 percent. In terms of cost reduction distance and employment costs, the distance can be reduced to 105 meters from 120 meters (reduced by 13 percent) and can be reduced employment costs to 107 baht per work from the original 147 baht per work (the cost can be reduced by 27.27 percent). Moreover, in terms of increasing the accuracy of storage, there can be a reduction in misplaced inventory from 1,400 pieces to 854 pieces or storage accuracy increased by 38.95 percent. As a result of an improved storage process with ABC analysis, there is a fundamental level component in the optimization improving analysis of storage processes, classification of products with ABC analysis product classification by ABC analysis and warehouse planning and layout. This affected the efficiency of storage process management, namely Increased storage accuracy, reduced cost of employment and reduced working time, respectively.