Abstract:
This research presents a case study of the inventory management system for the pharmaceutical and personal care products manufacturer. The objective of this study is to develop inventory management system by applied using the VED analysis to classify according to production priority, the FSN analysis to classify rate of turnover and the SDE analysis to classify lead time period then using 3 criteria model to classify items into the VED-FSN-SDE matrix analysis. Then, the sample cateogies would be set up the inventory management policy that are more suited for raw materials. The result from the study shows that EFE and DFD categories were classified to the highest consumption and inventory value. The materials in EFE category are 7 items with consumption 78.6 percent of total and has a value of 48.0 percent. The materials in DFD category are 37 items with consumption 4.8 percent of total and has a value of 12 percent. They were selected under variability coefficient (VC) test before applying EOQ model and Silver-meal Heuristic method. The reserch then find that VC of EFE category was below than 0.2 and which is suitable to apply with EOQ model. The inventory cost prior of EFE category was 2,668,045 baht, it could potentially minimize the inventory cost by 731,471 baht or 27.2 percent. As well, VC of DFD was greater than 0.2 which was applied by Silver-Meal heuristic method. The inventory cost has been improved from 1,300,568 baht per to 832,546 baht per year or 35.99 percent.