Research On Raw Material Inventory Control Of NEO Ltd

Production and operation of enterprises must have inventory, but inventory will cause thebacklog of funds, the site occupancy and depreciation loss waste, thus pushing up the cost ofthe goods. This paper studies a medium-sized electronic products manufacturing enterprises-NEO company, use the inventory control theory, to improve the managementement ofproduction materials inventory.The first chapter introduces the theory and methods of inventory control, studied quite a lotof documents about stock management.In the second chapter the paper makes a deep analysisof NEO company inventory management present situation, find out the main problems andreasons of raw materials inventory management in the company. They focous on the highinventory levels, large dull material proportions, and redundant procurement and excessiveproduction waste.The third chapter proposed the improvement method, according to the analysis problemsand the reasons. First, use the ABC classification method to classify the row materials.Second, control the most important materials, the biggest amount of the inventory, by usingthe theory of "control model of deterministic demand". And For general material of class A,optimize the amount of safety stock. And Use the predictive technology to reduce a specialmaterial inventory. Thus reduce inventory level. Third, the formulation of ailiao processingflow, timely recovery of funds; switching from SAP system to Easyfly ERP system, topromote JIT production, reduce caused due to change orders, product revision waste.Through the research and practice of nearly one year, inventory of raw materials of NEOCompany has been significantly improved. The last chapter of this paper refers to the effect ofimprove: raw material inventory turnover increased by13.9%, glassy material of more than180days reduces30.3%, inventory cost decreases, and the on time delivery rate increases.Conclusions of this study are: in medium and small sized electronic manufacturingenterprises, although the types of material are huge, and the production cycle is long,inventory control is very difficult., but with the theory of inventory control, strengthen theanalysis of data application, promote JIT production, select proper ERP system, the companycan effectively improve the inventory management status.