Research On Inventory Management Of DS Company Import Food Ingredients

In recent years,with the rapid growth of China food ingredients industry,import food ingredients companies become more and more mature while the market becomes more and more competitive.Inventory,as the important portion of import food ingredients company's assets,is always considered as one of the core competitions of the industry.The import food ingredients inventory have some features like longer lead time,variable customer demand and high damaged ratio during transportation,which have made the inventory management become more and more difficult.Therefore,how to optimize the inventory management is the critical problem for import food ingredients companies to solve.Inventory optimization can help to achieve the value-added chain,and it is of great significance to reduce the inventory level,accelerate capital turnover,and increase the revenue and profit.This essay will take the import food ingredients inventory of DS Company as the study object.By data collecting and analysis,some obvious inventory problems are summarized:high inventory level with low turnover speed,high slow moving inventory and high inventory scrap amount.According to the root cause analysis,major reasons causing problems are confirmed respectively:longer lead time and lower demand forecast accuracy,customer demand change and asymmetric information,higher warehouse and logistics damage rate.And this essay will come up with the some optimizing proposals separately:reducing the supplying lead time and customizing demand analysis to reduce inventory levels,enhancing the information symmetry and executing the PTO order strictly to reduce the slow moving inventory,reducing non-culture products damage during warehouse and logistics to decrease inventory scrap.This essay will help DS company to increase the import food ingredients stock turnover and reduce scrap amount,and reduce operation cost as well as improving customer's satisfactory.In the meantime,it can be as the inventory management reference for import food ingredients resale companies in future.