Inventory Management MHCN Companies

In the global economic integration deepening in recent years, Inventory management mode has changed dramatically and considerable development in enterprise, new concepts and models appear constantly. VMI inventory management mode has been a hot spot and widely be applied. Its universality, practicability and significant contribution to the company, are driving enterprises to keep on research and application, it can constantly promote the enterprise continues to improve, can enhance enterprise’s core competitive ability in today’s competitive market.This paper mainly studies how to set up an Economic Order Quantity for core component, build VMI inventory management model and application in VMI, inventory management model. To ensure the procurement costs, inventory level and the rationality of the inventory structure under a reasonable level. Plans to resolve the key problem of how to set up a EOQ mode and a benefit inventory model.This paper first elaborates the research background, then introduces and analyses the various stock and inventory management theory, and then introduce VMI management mode emphatically, then analysis the existing problems of company by ABC method, then issued countermeasures and then applied to management work. This mainly research focus on establishing a mathematical model for core components purchasing and set up a reasonable and applicable inventory management model. To minimize the company procurement costs, to reduce dead stock, slow moving stock and to optimize inventory stock structure. Finally, the paper reviewed the effectiveness after implemented the countermeasure.