The Inventory Decision Of Company A

Company A is a provider of application software focus on the Electronic Toll collection system (ETC for short) in the Highway. With the growth of the national investment in the Highway and its Mechatronics systems, the intense market competition and scale will bring more challenge and profit company A, which needs to possess the capability to meet the demand of the market timely, so as to exist and develop in the intense market competition. How to meet the demand of the ETC market and realize low cost operation quickly and efficiently is a tough problem for Company A, although as the software provider, which also need the relevant hardware as the running environment of the application software. Because of Lack of the inventory theory and method, Company A also has already faced the overstock and out-of- stock. So a set of theory and method focus on the inventory should be set up for company A. This article is to study inventory control from the inventory cost and the demand aspect.Based on the actual inventory data of Company A, author conducts statistics, classification on competition status, stock management status. It conducts a deep analysis on the problem of the inventory level, goods shortage, demand fluctuation etc. and also points out the most important one of the root cause of the stock management is the shortage of management mechanism.In term of the problem of company A, regarding the business feature and the particularity of project item, a classification management on company material by ABC method is conducted and the prediction-oriented acquisition strategy is presented, combining the material demand forecast model and order model. By analyzing the demand forecast of parts, the safety stock and purchasing plan are defined. It is significant to improve the purchase accuracy, reduce the stock level and meet the requirement of project quick response.