Research On Problems And Improvements Of Inventory Management Of DAAE Co.,Ltd.

Under the current huge market competitive pressure,automobile manufacturing enterprises must improve operating efficiency to reduce production costs through the improvement of internal management methods.To auto manufacturing enterprises,inventory,holding a great deal of capital and resources,has been regarded as their third source of life.Using reasonable effective internal management methods,enterprises can improve inventory turnover rate and reduce storage capital to reduce manufacturing costs,so that the market competitiveness is improved with meeting the production requirement on the same service level.Facing fierce market competition,DAAE Co.,LTD.,an engine enterprise owning its independent brand,is badly in need of reducing cost through improvement of inventory management.Firstly,this paper expounds DAAE's operating conditions,position within the industry,and competitive situation,and describes the current status and methods of inventory management.Secondly,this paper gets the existing problems and causes in inventory management through a questionnaire of all DAAE's employees,and analyses them one by one.Thirdly,this paper proposes four methods for improving inventory management:enhancing precision of forecasting,strengthening timely supply of raw materials,promoting the enterprise's information process and controlling dead inventory.Finally,this paper puts forward supporting conditions which are rearranging organization structure,strengthening supplier management,providing technical support and establishing management system.This paper proposes one sales casting method combing various ways for supply chain enterprises in the mode of vendor managed inventory,which helps enterprises control finished goods inventory.At the same time,this paper puts forward one kind of classified management of suppliers to meet the need of production of enterprises whose raw material inventories are managed by suppliers,and puts forward methods of special assessment and incentives to efficiently manage and control raw material inventory.