Abstract:
This Independent study is to investigate the Inventory Management of cosmetics shop in Mueang District, Chiang Rai Province. The study was conducted by using an ABC Classification for dividing products of A Cosmetics Shop into groups, and an Economic Order Quantity (EOQ) for practicing good inventory management support problems which were founded in A Cosmetics Shop through the interview and collected data.
The study was started by interviewing the owner and staffs about their working process, Supply Chain, and Business Canvas of A cosmetics shop. It was found that this shop were having problems about shortage of product, product lost, being out of date, and dead stock. Basically, A cosmetics shop had not divided products into groups or made a schedule for product checking and also never scheduled time and quantity to order. Therefore, it affected a high total cost.
In the present study, ABC classification was applied to calculate for an economic order quantity and the total cost of the products from group A. It was revealed that the total cost of products before using EOQ model is higher than total cost of products after using an EOQ model about 18.9% or 225,280 Baht. In addition, the researcher also analyzed a sensitivity of EOQ model to show how the result will be changed by the changeable parameters.