B Company Inventory Management Optimise Study Based On Demand Planning

Effective inventory management is always an important part in enterprises operation management while demand planning is the core of supply chain management.Enterprise used to separate the function of inventory management and demand planning management which causes less cooperation between the two functions: inventory management only focus on inventory turnover and value decreasing while demand planning management magnify the market demand and overpromise supply capability to customers.The conflicts between the two functions always causes enterprise difficulties in daily operation.In B company,inventory management always faces various market,various tasks but various constraints as such a practical and operational method is very necessary.This paper tries to view the demand planning and inventory management as one function study on that.This is because demand planning determines the inventory level while inventory constrains demand supply capability.This paper introduces demand and inventory conditions in B company and explores,summarize the practices,theories applied to inventory optimizations.The way to apply MTO/MTS,discrete production under certain demand planning environment while apply safety stock,ABC-XYZ,EOQ model to uncertain demand environments for the purpose of optimizing inventory.Final part introduces customer payment term management in B company.Payment term is part of demand management but always impact on demand inventory result so how to handle payment term is important.Traditional inventory optimization tools are not applied in payment term management.This paper gives initial solutions in daily management.