Case Study For SMMC Inventory Management

Inventories as one of the assets occupy a large proportion of the company resource. It affects to efficient running for the enterprise level as well as assets of the funds directly. The status of the inventory management running will affect to the interests of the company’s stakeholder and the enterprise itself, so we must pay more attention to inventory management.The paper chooses SMMC Company’s status of the inventory management for study. It will discuss the application of inventory management in practice to make the research more pertinence and practice. The paper will be starting on how to control the status of SMMC company high inventories. It collected a large number of first-hand information and data by questionnaires, interviews, literature review and site visits, etc. In using the statistical analysis method, financial and accounting related theoretical knowledge for data study, it reveals the reasons of high inventories. The paper also deeply analysis the problem in inventory management by the method of Pareto ABC analysis, JIT inventory management,6M management and so on. According to the analysis of the existing inventory status, management status, the problem in inventory management, the paper finally sublimation of theoretical knowledge. At the same time, it refers to the inventory data of similar company and compares the data base to find the difference, and further recommend five proposals for the improvement of inventory management. The five proposals are to improve the recognition of management level, improve the sales rolling plan, build up ERP system construction platform, enhance the training of inventory knowledge for related staffs and do the basic work to strengthen internal controls. The five proposals set up the target for the next step of inventory management work and help us find the problem and solve it at the beginning. One of the aims for this paper is to find a right way for SMMC Company’s inventory management.The thesis is divided into the following four parts:Fist, the introduction will be introducing four information, that is background information, the aim and significance, literature overview, research methodology and framework.Second, Case introduction will introduce the SMMC Company and the problem of inventory management. In this part, it will discuss that the high inventory arose a series of problem and finally found the reason for it.Third, Case study based on the theory explanation and the method of investigation analyzed the problem in inventory management for SMMC.Fourth, suggestion and revelation parts proposed several measures for certain problem and finally got two conclusions to face for the crisis of enterprise.