Toward a green inventory controlling using the ABC classification analysis: A case of motorcycle spares parts shop

Abstract

Abstract SSM is a large training unit, which focuses on selling the spare parts for the vehicle. Their current problems were the unwell-organized warehouse layout and the lack of distance of the shelves causing the warehouseman facing the difficultness in terms of inventorying the goods management. The overstocked supply usually occurs at the end of the year because of oversupply. This study used the ABC classification method for the rearrangement of their facility layout based on the demand. As a result, brake pad, outer tire, and engine oil, which were classified in A group (fast-moving), must be relocated closer to the access gate. By this arrangement, it could minimize the movement of the personnel up to 133,318.55 m annually. Moreover, using the Economic Order Quantity (EOQ) method, the order period, safety stock, and Re-Order Point (ROP) could be optimized, and the total supply would minimize cost.

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