Research On Material Inventory Management In Company F

Company F is a manufacturer which provides assembly lines used in womensanitary towel, baby diapers, adult incontinence. These assembly lines have manyproduct categories and frequently change request on demand. In order to meet thedemand of market and customer, Company F select pull model which is customizedand made-to-order to shorten the delivery time; Meanwhile, constantly developingnew products result in high inventory, and take up a lot of money. Reducing inventorybecomes a key to the development of the enterprise.Firstly, this paper discusses the main ways of material inventory control,itanalyzes the advantages and disadvantages of ABC classification and Kraljic matrixclassification. On the basis of the product characteristics in Company F summarizesthe main problems of the inventory classification, completes the main types ofinventory in company F based on the integration advantages of ABC classificationand Kraljic matrix classification, and realizes the raw material classificationdifferentiation management. Secondly, this paper analyzes the inventory managementproblems of Company F, establishes the goal of VMI(Vendor Manage Inventory) andfinishes the implementation of VMI in the company, including the preparations ofVMI prior to the implementation, VMI implementation and operation process, theVMI agreement between company F and suppliers and so on. At last, compare theactual performance with the previous one in terms of the inventory managementperformance indicators─Inventory cost deducts percentage is49.6%;Turn-over ratioincrease30.5%; On time of delivery increasing ratio is32%.In a word, it is theoretical and practical to utilize the material classification andthe classification of inventory management strategy in the various kinds of rawmaterial and complicated inventory management cases.