Study On Inventory Management Strategy Of A Company

As international and domestic energy market becomes saturated, green energy and emission reduction has become the new trends. Competition about resources in the market becomes more intense. Company A mostly produces electric power-generating equipment. The pattern of growth was high input, high consumption and low efficiency in the past, which will be difficult in the future. It’s urgent to change management and establish a more optimal supply chain processes.In this paper, a comprehensive analysis was implement to learn the business situation, organizational structure, culture system and the internal supply chain processes of company A. Then find out the problems in the inventory management. We combed the relevant theoretical research, such as ABC classification, VMI(Vendor Managed Inventory), and safety stock, then propose some optimization strategy for enterprise.The properties of company’s products are complex structure and difficult process; therefore it’s effective to producing in small quantities and multi-batch. Which leads to many problems generating in the material requirement, procurement planning and inventory management, such as low efficiency and high cost. This paper presents an improved ABC classification to classify materials and grad in accordance with the purchase price and the importance of supporting. For different levels and characteristics of materials, we use different management tools, such as VMI, safety stock, warehouse management and so on. Next, improve the MRP system, and use the information technology tools to ensure the optimization measures implemented.Finally, a further tracking test is conducted to measures the effect, problems and risks of these improvements. Through performance evaluation and risk assessment, we will propose some solutions and the next research direction. The reformation of company A’s inventory management is laborious, we must establish a sound mechanism to support implementation process, and constantly implement improvement measures.