Abstract:
The objective of this research is to determine the optimal spare partsvolume requirements in a Motorcycle Company in order to reduce inventory carrying cost. The methodology of this research started with collecting the spare parts inventory data in terms of type and quantity held in 2015. This was followed by using the ABC analysis method to classify groups of inventory. Group A which the total value is 80% of total was selected to further determine the optimal amount of inventory.Secondly, the Economic Order Quantity methodology with Basical model and Reorder Point factors were applied in order to get an optimal order quantity. Finally, new analysis results were compared with the old order requirements for 2015. The results, based on ABC analysis, showed the remaining 80.18% of value are group A, which can further be divided into 10 items. Economic Order Quantity system can reduce amount of inventory order and quantity. The results, when compared to the current system found purchase cost was reduced to 58,355 THB and the inventory cost reduced to 887,796 THB per year, which makes the total cost per year decrease by 946,151 THB.