Study On Optimizing Of Inventory Management In The ERP System Of QingHai Branch Of CHALCO

Inventory control is a core issue in an enterprise operation for it determines a corporate survival directly in the way of not only realize the cash flow but also reduces inventory holding cost and improves profitability of a corporation. Its task is to reduce stock holding costs as low as possible in sales of certain premise.This article expounds the correlation theory of ERP and stores control and emphatically introduces the working principle of ERP system, definition, types and function of inventory, content and purpose of inventory management. Meanwhile, gives an introduction of basic approaches of inventory management, such as ABC analysis, economic order quantity model, and vendor managed inventory.The article makes Qinghai Branch of Chalco as an object of study on the practice of SAP R/3 system in stores control, analysis the current situation and points out existing inventory management mode is not linked with the ERP system, application of ERP system is not sufficient and the setting of safe inventory is unreasonable. And then put forward some measures of to effectively use the ERP system, strengthen ABC material classification management, implement the vendor managed inventory, adopt bar code technology improvement.As the relative working practice of inventory control in aluminum industry is not yet mature and perfect, and the author's theoretical level is limited, there might be some points that are inevitably partial. The author sincerely hope that this paper can offer some references to the practice of inventory control in aluminum industry.