The Research Of Inventory Optimization Strategy In Auto Parts Plant

The auto parts industry is the solid foundation of the development of automotive industry. With the rapid development of automotive industry, the demand of auto market change constantly and the market competition is becoming fiercely. The technical innovation also changes rapidly. At the meantime, it brings opportunity and challenge to auto parts industry. Inventory management is the key issue in daily operation management for auto parts manufacturing plant. In order to get maximum profit, enterprises need to find the balance point between inventory level and customer service level. It is also one of the key points to improve the market competition.This article focuses on the problems of inventory management in B Company, an auto parts manufacturing plant. According to analyzing the inventory status and existing problems, it finds the right inventory optimization solutions for B Company. Firstly, it introduces the background of auto industry and brief information of B Company. In additionally, it analyzes the principal contradiction of current inventory:on one hand, the auto manufacturers required higher customer service level for them; on the other hand, auto parts plants have to face on their own inventory pressure. It is not a better choice for auto parts plants to hold high level inventory. Although it could meet higher service level, it also needs a lot of cash for the inventory level and increases its own operation cost. According to the analysis of inventory data of raw material, semi-product, finish goods, Firstly, this article presented an executable action plan for the purpose of inventory optimization in B Company from the point of view of demand forecasting; Secondly, safety stock setting up and dealing with general parts and special parts in different way. Last but not least, the article analyzes the efficacy of the inventory optimization action plan base on the data of forecast accuracy and inventory turn. This study is not only helpful for B Company to achieve the target of inventory management, but also meaningful for other auto parts manufacturing plants.