The Planning of the Optimum Purchase Volume of Wine Products During the Covid-19 Pandemic Case Study: ABC Commercial Co. Ltd

Abstract

 The objectives of this research were 1) to forecast the demand for wine products, 2) to plan for economical purchase quantities, and 3) to reduce the total cost of wine products during the COVID-19 situation of ABC Commercial Co., Ltd. As a result, the company has problems with improper inventory management. 60% of the wine expired and the cost of inventory storage increased. Based on the above problems, the researchers collected data from in-depth interviews with relevant people: 1) warehouse managers, 2) sales staff, and 3) accounting staff with the lowest sales volume for research 1). Mc Bin 8 rose 6X750 ml new wine 2) Mys selection C wine 6X750 ml 3) Berri Estates bin 222 wine 6X750 ml and 4) Mys Selection sb 6X750 ml wine. The researchers used the concept of inventory management by forecasting product demand by 5 methods: 1) Moving average, 2) Weighted Moving Average, 3) Exponential Smoothing, 4) Double Moving Average, and 5) Double Exponential Smoothing.

The results showed that the predictions of the four wines were as follows: 1) Mc Bin 8 rose 6X750 ml new wine, the saving order quantity was 1,915 bottles per order and the re-order point was 1,634 bottles per order, which were ordered cycle 168 times a day. 2) Wine Mys selection C 6X750 ml, the saving order quantity was 2,567 bottles per order, 1,146 bottles of repeat orders per order, and 98 orders a day. 3) Wine Berri Estates bin 222 6X750 ml, the saving order quantity was 1123 bottles per order, the re-order point was 457 bottles per order and 205 orders per day, and 4) Wine Mys Selection sb 6X750 ml, economical order quantity was 1571 bottles per order, the re-order point was 1340 bottles which were ordered 163 times a day. The total cost before forecasting was 160,007.75 baht per year after forecasting the total cost was 26,476.08 baht per year, a decrease of 83.45%.