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The Application of Inventory Management Theory for Bakery Factory
The objective of this research is to present the application of inventory theory in raw material management of one bakery factory in Chiang Mai province. เท bakery production, raw materials used are various. Some raw material is short shelf-life. For this case study, there are 2,561 types of raw materials classified by considering value of each raw material following ABC classification concept combined with Multiple Attribute Decision Making (MADM) using three criteria as expired date, ordering lead time and possibility to use alternative raw materials. Raw materials were classified into nine groups as AA, AB, AC, BA, BB, BC, CA, CB and cc. From those groups, only five groups were selected for setting practical ordering systems. For AA and BA, EOQ with Nonlinear Holding Cost was applied for these two groups due to short shelf-life. Economic Order Quantity (EOQ) was used for AB and AC. Fixed Order Interval System was used for CA. The results of the proposed system showed that the total inventory management cost can be reduced as 787,328.92 Baht or 76.4% reduction. The value of average inventory level can be decreased as 512,158.08 or 6.1% reduction. เท addition, the proposed policy is also valid when the cost of raw material significantly increases.