The efficiency improvement in inventory warehouse management case study in automotive part company

The study of this research was to improve the efficiency in inventory management case study in automotive part company. The objective was to control the quantity and storage space of inventory and reduce inventory management costs. As the study and analysis of current data, it was found that the cost of inventory materials was higher than sale volume, and there are products that have not been moved for 5 years because of ordering patterns, order estimate and the determination of safety stock are higher than necessary. Then techniques were proceed with improvements by calculating Economic Order Quantity (EOQ) to find the optimal order quantity, number of orders and lead time for ordering. Then the use of 7 wastes theory to deal with raw materials that did not move and applied the theory of first-in first-out (FIFO) and ABC Analysis to help with disbursement, controlling quantities and storage areas. After the improvement, it was found that the amount of inventory decreased by 15.06%, the material value decreased by 21.91%, products that did not move decreased by 23.02%, disbursement took time reduced by 7 minutes/work order, accounting for 21.88%, storage time decreased to 5 minutes/Tag Received as 25%.