A Pipeline Company Research Inventory Management Optimization

In production and business activities of enterprises, the cost is an important factor affecting the economic efficiency of enterprises. Inventory cost occupies a large proportion of the many cost items. If the inventory reserves improperly, the consequence is increasing the cost of the enterprises and inhibiting the enterprises’development seriously, and even leading to enterprises’cash flow difficulties, resulting in the consequences of business failure. If the inventory is in a good condition, it can accelerate the turnover rate of funds, improve the efficiency of using funds and increase the investment income.A Pipeline Company is a professional natural gas pipeline transport enterprises. Although its operating time is short, but the inventory management has exposed a lot of problems, such as the inventory management concept falls behind, the procurement cycle is long, the inventory cost is high. The paper researches for A Pipeline Company’s inventory management optimization against the problems. Firstly by investigating A Pipeline Company, it summarized the status of the company’s inventory management, found the existing problems, and analyzed the reasons; secondly after optimizing the classification of the inventory, it established inventory model based on the equipments’life distribution function for the most important materials, chosen economic order quantity model and (Q,R) inventory replenishment policy for the more important materials, and analyzed an instance for each model; then it developed an overall framework of the company’s inventory management optimization, covering the goal, the guiding ideology and principles; finally for the company’s existing problems in inventory management, it proposed corresponding measures, including establishing a correct concept of inventory management, strengthening the management of vendors, making the information system perfect and intensifying the materials’storage.