Determining order quantity for small traditional wholesale company by considering business environment through a simulation

Abstract

The objectives of this research are to develop a tool to control the quantity of an order, to increase purchasing staff performance from the service level of 70% - 80% nearly to 99% and increase inventory turnover from 2 - 3 times per month to more than 5 times per month. The purposive sample was selected using four stores of a small trading of consumer products in Ampur Muang Chonburi Province with sales of more than 70 million Baht per year. The study used interviews to examine the decision making processes for order quantity. In addition to using the Microsoft Excel Program to develop a tool for calculating order quantity and a simulation tool. From the study, the service level can be increased from 70% - 80% to 97.28% and the inventory turnover can be increased from 2 - 3 times per month to 6.27 times per month.

Keywords

• Order quanitiy
• Simulation
• Service level
• Inventory turnover