The Study Of The Purchasing Part Inventory Management Of S Company

With the serious competition of the market, as one of the core factors which would directly affect cost, inventory management has been attached great importance by many companies. S company is China headquarters of a multinational company and has problems including high Inventory Carrying Cost, low turnover rate, high stock out cost and high excess stock. In order to solve these problems, this paper researched the inventory management for S company purchasing parts in below aspects.(1) Analyzed the root cause of the problems systematically The main causes of the problems include the lack of demand forecast and analysis for the purchasing parts, supplier management problems and inventory management method issue. (2) Researched the problems of the lack of demand forecast and analysis for purchasing parts. Based on S company's actual situation, this paper selected seasonal exponential smoothing as the forecast method.(3) In order to solve the problems of supplier management, this paper used analytic hierarchy process method to select suitable suppliers. Adopted key performance Indicator as basis for supplier rating, as wells as for supplier reward and punishment. This paper studied supplier classification and developed dual-source suppliers for key purchasing parts to control supply risk based on these results.(4) In order to improve the inventory management, this paper designed the comprehensive material classification model and classification standard, based on the integrated research of ABC classification and Kraljic matrix classification method.(5) Compared different control parameters and ordering strategy of materials and taking different inventory control model for different materials based on material classification.