Faw Car CO.LTD. Inventory Optimization Problem Research

There are many links in the procedure of business administration. Inventory management is one of the main links in the business administration, because it affects the whole production design. Appropriate inventory helps protect unsure and random changes of needs and keep producing continuing and stable. However, an excessive of inventory takes occupation of too much capital and is a kind of waste. In recent years, the inventory management, which is based on the supply chain, is shown its advantages of lowering the inventory cost, improving the service level and so on. It is becoming the research center of the academic field. A number of big companies have put it into practice.Through the field research, this thesis analyze the present inventory management situation of FAW Car Co., Ltd. and put up proper strategies for the inventory management integrated with the modern supply management theory and new model of inventory management. This strategy strengthens the cooperation of each dot through settling the cooperation center and building up the optimization models for the inventory management. At last, this model is tested effectively by the sample statistics.