Inventory Management Strategy Of BKM Chemical

BKM (Shanghai) is a leading US WOFE chemical plant specialized in R&D, production, marketing & sales, and technical services. Currently BKM is confronted with the challenge of substantial pressure in the operation cost and financial standing arising from the reduced lead time and an increasing number of SKUS requested by the customers with the continued expansion of the company sales quantity, and consequently the total inventory quantity is on the rise, thus giving rise to the urgent study of the optimal inventory management strategy for BKM.This paper has analyzed the existing problems with BKM inventory management and proposed raw materials and finished product inventory management strategy based on ABC classification by studying BKM (Shanghai); meanwhile MRP-based inventory strategy is proposed in response to the relevance of the company materials; the paper has proposed the inventory management strategy based on information sharing, including CPFR inventory management and VMI inventory management. This research is helpful for this company to design and customize the optimal inventory management strategy with high efficiency and practicability.