INVENTORY MANAGEMENT OF A VENDING MACHINE BUSINESS WITH DYNAMIC LOT-SIZING MODEL

Abstract

The research on inventory management of a vending machine business using dynamic lot-sizing model aimed to: 1) study the inventory management, warehousing, transportation and distribution of a vending machine business in Chiang Rai province, and 2) improve the inventory management efficiency, warehousing, transportation and distribution of a vending machine business in Chiang Rai province. The methodology used in the study was a qualitative approach using in-depth interview, observation, and inventory management analysis to improve the inventory management efficiency, warehousing, transportation, and distribution.

          The research results found that goods sold by vending machines were mostly drinks, snacks with plastic packaging or paper packaging by which the vending machines were both normal and with cooling system. Most of the vending machines were in populated areas such as universities, hospitals, and government offices. The transportation, distribution and replenishment were still operated by human forces, using pickup trucks as vehicles. The equipment used was hand pallet truck and tote bin.  The obstacles were inventory cost management, replenishment, and staff. Regarding the improvement of inventory management, warehousing and transportation and distribution, the concept of ABC Analysis, Peterson-Silver Rule technique and dynamic lot sizing model was applied, resulting in a reduction of the overall inventory cost management at 497,848 Baht, equal to 29.90 percent.