Inventory Management Analysis Of Package Material Of Company A

Inventory management is an important part of all element of company operating, it notonly impact on turnover of cash, but also have important role on meeting customer’s demand.Keeping a high storage inventory can serve customer better, on the other hand it also occupiesthe turnover of cash, which can affect operating cost of company. Keeping a low storageinventory can decrease cash occupied, on the other hand it can cause imbalance betweensupply and demand, thereby impact on normal operating of company. Therefore therelationship between keeping balance storage inventory and meeting customer’s demand isbecoming a concern of many companies.Company A is an international epoxy resin manufactory. It started operating of epoxyresin in Guangzhou area over three years. Currently Company A is under phase fromconstruction to normal operation. With internal circumstance of company, Company need totransfer its operating model from project investment model to lean production model, tomanage cost and to reduce waste. At the same time, with intense external competition, otherdomestic companies occupied market with low cost, it caused huge impact on market share ofCompany A. With internal and external forces, Company A can reduce cash occupied andimprove competition advantage by optimizing current storage inventory of package material.This article introduces analysis background, meaning, core concept, literature review,content of analysis, analysis method and technical route in introduction, describes currentstorage management of Company A, introduces current organization structure of packagematerial, management method and other basic information, and split process of packagematerial activity in Part two, analyzes current problem of inventory management of packagematerial, and conduct root cause analysis for these problems by using fishbone method in Partthree, provide improvement measure in Part four, finally make a conclusion, and conclude theoutcome and meaning of optimum measure.This article analyzes current storage inventory management status of package material ofCompany A by using method of storage inventory management, provides correspondingoptimum measure for current storage inventory management. The optimum measures caneliminate renting and management cost of outside turnover warehouse, adjust deliver plan ofpackage material for suppliers, decrease safety inventory of package material, establishmetrics for personnel of package material, and strengthen information exchange fromsuppliers, it not only decrease the cost of package material, increase profit of product, but alsostrengthen the competitiveness of Company A.