Paper #19

Balancing Hype and Continuity: Optimizing Inventory Levels for ‘Elevated Basics’ through ABC Analysis and EOQ Modeling on La Creación’s Heavyweight Apparel Line

Franz Julian Ailes, Jerson Carl Arcena, Jhan Ceddrick Castro, Jeremiah Ross Malinis, Edrhon Jacob Velayo, Klint Allen Mariñas and Michael Calamba

Presenting author: Edrhon Jacob M. Velayo

Session: O18

Abstract

Hybrid streetwear brands face a unique problem when balancing inventory, and La Creacion struggles to manage the steady demand for their basic shirts while dealing with the erratic sales of their hand finished art products. To find a practical purchasing strategy, this study implemented the ABC Analysis to group their inventory. Calculations were made with the Economic Order Quantity and Reorder Point. The results have shown that the basic shirts are Class A items that bring in the most money and demand strict control alongside high safety stocks. Meanwhile, the high risk art pieces are categorized as Class C and require minimal stock to avoid high holding costs. By using an appropriate mathematical approach, local micro, small, and medium enterprises can stop relying on intuition and build highly responsive operations that protect the company’s cash flow and keep them financially secure.