A Study of Cost Reduction in Automobile Company Warehouse

This research aims to reduce inventory costs by improving inventory management using the 3 GEN theory. A cause-and-effect diagram was found the root of the problem. There was a large amount of inactive inventory and purchasing beyond necessity. Before the improvement, there were 4,854,149 pieces of inactive materials. The goal was to reduce 10%, involved reducing deadstock by redesigning products, selling to a recycling company, and disposal. After implementing, the amount of deadstock reduced by 25%, from 4,854,149 pieces to 3,632,438 pieces. Purchasing adjustments, including postponing shipments and recalculating orders. Before the adjustments, the purchasing volume was 21,860,000 pieces, and after, it was reduced by 58%, to 9,121,899 pieces. Inventory storage decreased due to the reduction in deadstock and purchasing. The total inventory decreased. Earlier, the total inventory was 41,775,972 pieces and afterward, as recorded on March 31, 2024, the remaining inventory was 36,733,751 pieces, reflecting a 10% reduction.