Research On ATO Inventory Control In EM Company

Inventory control is an important part in business and operation management.Inventory control can impact to cost management and also bring a key effect to service level and satisfaction of customer.Especially Raw material management is a key part in inventory control due to the high value effect;more and more company began to keep their focus on raw material inventory management.How to control the inventory under a reasonable level to reduce inventory cost,and how to prepare and keep stock to meet customer demand,above two is the key purpose of inventory control.And how to balance the inventory level and customer service level is a key point in inventory control.The studies and approach of inventory management strategies can help company to control inventory more effectively and upgrade the management in inventory.This thesis is to study diverse management strategies for EM Company base on satisfaction of customer and current status of inventory control.Firstly,find the root reason of low customer satisfaction a poor performance in on time delivery-material shortage.Considering the characteristic of ATO and product demand,analyze the status of EM Company inventory management status and material supply,then propose two different way to manage high frequency parts and low frequency parts.For the high frequency parts,use the ABC classification/ dynamic safety stock/ KAN-BAN/ VMI to build stock and increase the level of customer service,for low frequency parts use the Kraljic matrix and analyze the actual distribution of material lead time using Minitab,then adjust system lead time refer to the results of analysis,to improve material on time delivery and synchronization which will be helpful to reduce inventory and increase customer satisfaction.This study is helpful to improve the customer satisfaction of EM Company,and use the method above to enhance synchronization to consume stock in time and reduce the level of inventory.Meanwhile the approach proposed in this thesis can also help other ATO company.