Research On OTD Strategy Of R Auto Parts Company Under MTS-MTO Hybrid Production

Extremely complex and competitive automotive aftermarket stimulates enterprises to strengthen their standing in the marketplace and reinforce their position to win strategically.To achieve this,enterprises need to improve customer services by increasing on-time delivery rate to ensure rapid response to customer requirement,and therefore maintain their market share.Undoubtedly,delivery performance is growing to be one of enterprises' core competitiveness except for cost and quality.Inventory has an impact on delivery performance.Finished product safety inventory is key to improving inventory service,reducing shortage probability and possible loss due to the shortage.However,a balance needs to be struck between the inventory and customer satisfaction,for keeping too much inventory will take up the circulating funds and reduce profit margins,while too low inventory will result in the decline of customer service.R Company is specialized in auto parts in aftermarket with its export sales over 80% of company's sales in total.Most of its customers are in developed countries like Europe and America,where the automobile aftermarket is relatively mature.However,there are some big challenges in the delivery performance while the company is undergoing fast development.The current situation of R Company's delivery performance,the sales volume in 2018 and R Company's existing production and inventory management mode are presented in this paper,aiming to analyze and find out major problems in its inventory control.The major problems are as follows:(1)The storage forecast is not based on precise analysis and summary of global data.(2)The inventory classification of MTS-MTO Hybrid production mode is not based on scientific analysis and company's realities.(3)The lack of practical and rational inventory control strategy.(4)Fail to focus on product life cycle in inventory management and fail to find out solution to that.Based on the above,a new inventory model based on MTS-MTO Hybrid production mode is proposed,and the feasibility will be forecasted by Delphi Method before implementation.The modification of this model will be conducted in accordance with possible problems and experts opinions.Given these problems,the company is required internally to summarize and analyze data from regional market or customers,and externally to get closer contact with customers.Due to the lack of scientific classification,a systematic classification standard of MTS-MTO needs to be established.Based on value index,the ABC classification method is introduced to further classify products in MTS mode,and different ordering strategies are adopted for products of class A,class B or class C.When that happens,the delivery performance,well-balanced and upgraded inventory structure as well as cost effectiveness will all be achieved.In addition,the revised plan of existing MTS-MTO classification standard must be implemented based on the theory of Product Life Cycle,and therefore the sluggish inventory turnover can be prevented.