Inventory Management for Import Frozen Food of Food Services Industry

Abstract

The purpose of this research was study how to manage the inventory of imported frozen food which has stored the goods in the large amount of inventory that causes for cost extra expenses to rent public warehouse. Researchers had analysis and design to find the suitable inventory management. By using both continuous and periodic inventory theory for calculated order quantities and reorder point and compared it with the currently used method to identify the most efficient inventory management system. The result indicated that by using continuous inventory system can improve the efficiency of inventory management of their three sample products. The total inventory cost of the sample product 1,2 and 3 were reduced by 59%,69% and 89% consecutively which affected from the huge reduction in expenses used in storing inventory because the current system did not take the ending year inventory into account and started stock their products at the beginning of the year. Moreover, increase inventory turnover rate of the three sample products while their customer service level still at 100%.