Research On Chemical Distribution Companies’ Inventory Management Based On 6-Sigma Theories

Especially for the chemical distribution companies who hold inventory. The inventory level plays an important role in the process of production and sales. It is the most efficient solution to increase the margin and improve competitive position in the market that we should obtain healthy cash flow and save cost through implement scientific management and optimization on inventory.From the beginning of 1990s, six-sigma management theory has been developed to be very complete and systematic in the past decade. What’s more, now it is not only applied in traditional production enterprises, but also applied in very ring of management, marketing, design, etc. to lower the defect in products or procedures and eliminate the non-appreciation ring to save cost, improve customer’s satisfaction and competitive position.This article will be based on the relative theory and the real problem in a certain enterprise, by means of analysis on history data, to obtain the possibility of the uncertainty under certain conditions to set up the inventory model under uncertainties. Then we will obtain most reasonable order quantity through solving ambiguity function. Together with this action, we will discuss the feasibility, necessity, difficulty and solutions to combine the relative theory of six-sigma, ambiguity function and inventory management. After ascertaining the target of this six-sigma project, to lower the total inventory value, we will follow six-sigma’s standard and traditional DMAIC procedure to measure, analyze, improve and control UC China’s all the current process being related to inventory management to achieve the target.We hope this article can be an effective and useful reference and practical experience to the decision makers in chemical companies, especially in the chemical distribution companies.