Research On Several Order Models In AM Company

AM company is one of the component distributors,and it have many extensive experience in inventory management at past.Due to the price and profit continuous reduced these years,there are many inventory problems need to be solved,including overstock,out of stock,stock depreciation and so on. Therefore,AM company have to fix these problems with new method.Actually,it should be not only fulfilled for customer request and also achieved on low cost inventory management.The main content of the paper are as follows:(1)Based on the actual inventory status of AM company, the author have a deep analysis on the problems and causes of inventory management.(2)Analyze and explain why there will be many overstock problems after choosing periodic and quantitative ordering policy with ABC classification.And then introduce the three-dimensional classification before new order policy have been implemented.(3)Because the lack of the periodic and quantitative ordering policy,AM company have to introduce other order models,including economic order model,dynamic order model and random order model with safety stock.Through analysis,calculation and comparison of several different order models,the author choose the optimized order policy based on current situation.