Raw Material Inventory Optimization

Raw materials inventory management is one of the most important contents in enterprise management activity. Effective management of raw material inventory plays a very significant role in reducing business operating costs, maintaining product stability, improving customer responsiveness and improving the operating efficiency. But how to carry on the effective management of raw material inventory is always a problem in most of the enterprises, especially for manufacturing enterprises. To the enterprise too much raw material inventory often means low efficiency of using funds, covering the problems in production activities (such as material quality problem, timeliness of delivery problem, production plans problem, etc.), and causing enterprise management costs increased (such as storage cost, ordering cost, etc.); but if the inventory of raw materials is too low, it will lead to the increasing of production of instability, reducing ability to respond the changes of market and losing sales opportunities and a series of consequences, and these consequences will eventually lead to decline in competitiveness of the enterprise and even the business failures.So how to effectively manage raw material inventory control, how to expand the benefits of raw materials for inventory and reduce the drawbacks of raw material inventory become the focus of many enterprises and scholars.PB enterprise is a manufacturer of Nickel Metal Hydride battery. At present PB enterprises is facing the problem of raw materials inventory increasing year by year, as a result of operation of capital increasing and bank loans increasing. This paper attempts to optimize raw material inventory of PB enterprise by analyzing PB enterprise raw material inventory situation and learning the related principle of inventory management. Firstly based on the analysis of current situation of PB enterprise raw inventory management to know the problems of raw material inventory management of PB enterprise; secondly describing elements of PB enterprise raw materials inventory management through PB enterprise production and demand analysis, inventory cost analysis; then based on the analysis of raw materials inventory and management elements and combines with the relevant principles of raw material inventory management in order to optimize the management of raw material inventory of PB enterprise. Firstly to understand the status of raw material inventory of PB enterprise by analysis, secondly to describe the management elements of raw material inventory management elements of PB enterprise, mainly through the production of demand analysis, cost analysis and the use of inventory. Then to combine with elements of raw material inventory and relevant scientific mathematical models for PB enterprise to establish optimal inventory for raw materials through an instance of V material to explain. Finally, to get some summary of this research, and based on the findings of this research, some proposal would be suggested to PB enterprise.