Research On Procurement And Inventory Optimization Of Steel Enterprises Based On Supply Chain Management

With the strengthening of global economic integration, the competition between enterprises becomes more and more fierce. As an important means of management, supply chain management has gained more and more enterprises favor when they are in order to obtain more competitive advantage in the era of globalization and network. Since the outbreak of the global financial crisis and European debt crisis, the economy of Europe and the United States suffered a serious impact, the demand of the market serious atrophy. The world steel industry suffered a great impact, large and medium-sized steel enterprises in China also appeared profit serious plunge and losses. While the domestic steel enterprise has always paid more attention on production than circulation, but the smelting technology upgrade requires enormous cost, benefits also often take years to manifest, so more and more managers of steel enterprises start to get profit from the logistics field. The cost of purchase and inventory account for more than65%of the total cost of steel enterprises, optimization research on it has a certain practical significance for reducing the logistics cost and expanding the profit space for steel enterprises.From the supply chain, by the view of procurement and inventory optimization, based on the classification of materials, this paper gives different procurement and inventory control strategies according to the different classification of materials. The paper includes the following particulars:Firstly, this paper introduces the connotation of the supply chain, the importance of purchasing and inventory management and the related theory, also compares with the traditional management mode. Based on teasing purchasing and inventory management of steel enterprises, the paper analyzes the structure of species, purchasing and inventory characteristics and problems, also put forward the basic idea and method to solve the problem.Secondly, due to the variety and large quantity of raw materials, different materials have different purchasing environment and difficult management, it’s necessary to conduct a scientific and rational classification for raw materials. This paper based on the Kraljic model, classifies materials from two dimensions of profit impact and supply risk. The raw materials are divided into strategic materials, important materials, bottleneck supplies and general supplies. Also, the paper puts forward the corresponding purchasing strategy and establishes inventory optimization models for each class of materials.Finally, the paper optimizes the existing procurement and inventory of JL Steel Co. Ltd, gives optimal order point, the procurement period and purchase quantity. Combining with the actual situation of JL Steel Co. Ltd, the paper confirms the feasibility and practicability of the procurement and inventory strategy model. This paper establishes a reasonable material classification management and inventory optimization for the steel enterprises, respectively, puts forward corresponding procurement and inventory optimization strategies, and provides feasible suggestions for modern logistics management in steel enterprises.