Inventory Management Status And Optimization Recommendations For Company M

Supply chain management is one of the most important trends in current international business management as well as China’s enterprise management, in which inventory management is the key of all and also one of the important parts in enterprise cost management. Inventory has great influence on production planning, marketing strategy, capital utilization; service level, especially for project-oriented enterprises, scientific proper inventory management can greatly improve the speed of inventory turnover and asset turnover, and thus significantly improve the economic efficiency of enterprises.M Company is a typical project-oriented enterprise featured by vast product varieties, long production cycle, having high demand for resource planning, cost and delivery, thus make inventory management more important than ever. According to these characteristics of M company, it has become an urgent problem to solve for M company to have a reasonable and effective inventory control system.Based on inventory theory, theoretical analysis and case analysis combining research methods, studies have been made on the inventory management of M Company. This paper follows the steps of "Current Situation analysis-problems-problem analysis-solution", discusses the basic theoryofinventory management, includingthe basic principles,modeland the concept ofzero inventory, product in,and implementation.Next, it took M company inventory problemsfor the study with themoderninventorymanagement methods applied to its actualsituation and analyzing the problems of M company is now facing from residual material, safety stock and delivery from suppliers. Then it discusses the factors that have influence the inventory management of M company from the aspect of SAP system, the project features,informationsharing,and analysis of the factors. On this basis, it offers solution for optimizing the company’s internalmanagement and external operation.This thesison theoptimizationof M company’sinventorymanagementhas reference value, for the similarproject-based enterprises and can be applied to the similar cases.