Published date: Mar 01 2018

Journal Title: KnE Life Sciences

Issue title: The 3rd International Conference on Agro-Industry 2016 “Competitive & Sustainable Agro-Industry" (3rd ICoA 2016)

Pages: 228-236

DOI: 10.18502/kls.v4i2.1676

Rathanaksambath LySchool of Management Technology, Sirindhorn International Institute of Technology, Thammasat University, Pathumthani 12120

Morrakot Raweewanmorrakot@siit.tu.ac.thSchool of Management Technology, Sirindhorn International Institute of Technology, Thammasat University, Pathumthani 12120

ABC inventory classification is a well-known approach to assign inventory item into A, B, and C groups based on their sales and usage volume. This helps inventory management become more efficient. Behind its advantage, it usually shows some problems with an inventory budget and warehouse space because the ABC assignment of SKUs are mad e without an inventory budget and space available involved. In this paper, the ABC group under restricted of an inventory budget and warehouse space to maximize the profit with optimal service level is presented. We establish this proposed model to enhance the existing ABC approach to be more applicable in real life, which has the limited inventory budget and warehouse space.

Keywords: ABC Inventory Classification; Inventory Management