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Inventory Management for the Reduction of Material Shortage Problem for Pasteurized Sugarcane Juice: The Case of a Beverage Company

Roongrat Pisuchpen 1 and Papatsaraporn Rienthong 2
1. Faculty of Engineering, Industrial Engineering, Kasetsart University, Bangkok, Thailand
2. Faculty of Engineering, Engineering Management Program, Kasetsart University, Bangkok, Thailand
Abstract—This research is intended to study the techniques of forecasting seasonal customers’ needs of sugar cane juice by using time series analysis. The results of the forecast are the quantities of overall sales of the 12 months from January 2016 to December 2016, calculated to seek for seasonal sugarcane juice and related trends by concerning the limits of manufacturing capacity, costs, and related services to save costs and generate profits. The calculation for the incurring expenditures from the process of ordering raw materials and improper inventory management is done by using Linear Programming. The study seeks the lowest total cost of 5,707,362 THB. When comparing the new results with the old system, 428,381.20 THB/year will be saved in terms of freezing storage.

Index Terms—forecasting, inventory management, linear programming

Cite:Roongrat Pisuchpen and Papatsaraporn Rienthong, "Inventory Management for the Reduction of Material Shortage Problem for Pasteurized Sugarcane Juice: The Case of a Beverage Company," International Journal of Life Sciences Biotechnology and Pharma Research, Vol. 6, No. 1, pp. 1-6, June 2017.
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