Inventory Optimization Researching Of LA Company Based Onsupply Chain Management

According to data from the worldwide market research, China has been among the number one smart phone shipments country with the most cost-effective and fast delivery capability. The Chinese smart phone manufacturers do everything possible to reduce operating costs to meet the low-price competition due to the over-competition in China. And smart phone be replaced frequently with the development of new technologies. But the most raw materials are electronic components with such characteristics that high value and faster depreciation. Therefore, inventory optimization management is the one of the important content to lower the inventory and cost risk, and further rapid response to customer’s need. There is no doubt that inventory management must become a core competency to company, especially the homogenization of products flood in the market.The research object of this thesis is the LA Company, a small and medium-sized enterprise which always focuses on camera modules manufacturing to Chinese mobile phone customers. The traditional inventory management idea from LA Company has not adapted to the needs of market competition at all. And it is difficult to be changed owing to lack of finance and lower income. This paper attempts to study a new inventory management method to modify and improve LA Company, without more additional economic investments, by considering the industry factors and leaning from supply chain management theory. The main idea is strengthening real-time information exchange, dynamic coordinating the planning to customers & suppliers to minimize the influence of bullwhip effect on whole supply chain inventory. Promote the use of the similar method of jointly managed inventory to reduce overstock risk and out-stock risk, to achieve double win on every knots in the same supply chain. Only then can the company achieve inventory optimization and lower overstock risk, enhance the core-competitiveness eventually.