Research Of Inventory Management For Company A

With changes of technology and economy, companies now are facing big changes of competition situations. Efficient supply Chain became the core competitive ability of the enterprise and now is more and more important to the managers. Meanwhile, to improve inventory turnover rate, reduce supply chain cost has became an significant task of supply chain integration. Being the important part of supply chain management, inventory control is much more useful and gains more benefit to the enterprise.The paper elaborates the inventory management concept and the importance during managing a supply chain, states the inventory situation of company A, analyzes the forecast accuracy from deman planning point of view. Comparing the supply chain management theory, the paper lists the disadvantage in company A, based on the actual situation finds out the method to improve forecast accuracy and the optimization for inventory. Put forward that the optimization of demand planning for forecast accuracy by using ABC classification, further to decrease the inventory cuased by low forecast accuracy. Based on the ABC classification with leadtime setting as well as the theory of Vendor Managed Inventory, provides a better inventory managerment for company A. The inventory value in company A has taken parts of the cash flow which affects the market share in the world. So, to investigate a better inventory management theory makes the company much more competitive and cost saving.The company has many kinds of products with different production sites. With the limited productivity and low accuracy of forecast, as well as long delivery time of OEM products, the inventory turn over is very slow. So the inventory is always a problem. With the problem solved the company can be more completive in the world. In this paper, the data sourced from Company A, the related ideas of inventory management also has the reference significance to the similar enterprise to the industry.