Research On Enterprise Inventory Management Under Market Competition

The world economic pattern has been experienced big changes since the world financial crisis happened in 2008. The economy of the western countries entered into a consolidation or recession stage, meanwhile, the Chinese economy has stopped the high-speed growth. According to the demand changes inside and outside of China, the enterprises have been confronted with more strictly competition situation. Which made the consensus of all enterprises is that strength en internal management. In this situation, detail control becomes the key point of efficiency and benefit improvement. Inventory management is a important part of company operations, and is a effective control point to increase benefit. By analysis and research the connection between operation loss and inventory, with the index comparison, the R company’s revenue, profits, the amount of inventories, inventory turnover and other data analysis, and data with other companies in the same industry comparative analysis, this essay noting the R company due to inventory mismanagement affect the company’s profits and proposing to adapt the environment R company inventory management methods and strategies, is a method of MRP in the supply chain system, with a reasonable four-quadrant classification inventory management strategy. All aspects of the business are interrelated, partial optimization dose not represent the overall best, but the improvement of individual aspects may affect the overall efficiency. Therefore, inventory management is good or bad, really creates a great impact on business operating profit. Using appropriate methods and strategies on the inventory management, not only help to improve the R Company’s operating profit, but also mean significance to the other enterprise inventory management.