Study On Inventory Optimization Strategy For Raw Material Of Xi’an HL Corporation

Xi’an HL Co., Ltd. is established by scientific and technical personnel of First Aircraft Institute of AVIC, Chinese Flight Test Establishment, Xi’an Aircraft Manufacturing Company. In recent years, with the expansion of business scale, the company often faces with raw materials of product-Venturi tube can not be delivered, leading to customer supply can not meet, and temporarily unused raw materials warehouse inventory backlog. These problems have inhibited the further development of the corporation. Therefore, it is important to establish the optimization model of raw materials to develop a reasonable strategy to enhance corporate profits. The main innovations of the results of this paper are as follows.This paper summarize the current situation and inventory management theory, outlined from inventory problems, optimization methods common stock and the common stock and its evolution optimization model. Thereafter, on the basis of research and analysis of Xi’an HL Corporation, combined with the actual situation of company’s products raw materials of product-Venturi tube inventory management and control, in accordance with the value of the raw materials,the classification is given, then from the two categories of given, each selected several representative inventory of raw materials to analyze its current situation respectively, and summed up the exist inventory management problems of the raw materials of Xi’an HL Corporation. The results show that, the curves of the two types of raw materials inventory levels in the presence of volatility are not smooth enough. On one hand, the inventory sometimes is zero; one the other hand, it sometimes in a very high level. When inventory is zero, if the customer orders increased, then it may not meet production demands, this will cause losses; and when inventory levels are too high, the inventory management costs will increase, is not conducive to economic efficiency of the corporation.Based on the problems of these two different types of raw materials inventory management respectively, from these two categories of raw materials,we each selected several representative raw materials inventory to optimize, optimization models are given, and order to solve the optimization strategy are shown. For ingredients of higher prices, we established economic order quantity model with reorder levels and give specific orders by solving strategies; for accessories of lower prices, we established instantaneous replenishment orders which are not allowed stock out, and give specific orders by solving strategy. Finally, from overall management perspective of Xi’an HL Corporation, we proposed supplementary measures to ensure the smooth implementation of the optimization program.