Study On The Inventory Management Of Phone Products Based On Demand Forecast

In cellphone market,product generation upgrades rapidly with new product launching nearly every moment.Therefore,cellphone companies are facing great challenge of inventory management because of cellphone's short life cycle,high demand fluctuation,and frequent forecast change.Demand forecast accuracy is the prerequisite of effective inventory control,only based on which,the order strategy targeted for a better inventory management can be effectively executed.For products with short life cycle,the coordination of whole supply chain,quick response and synergy are especially important.This paper firstly analyzes short life cycle products using documental method,case analysis method,qualitative and quantitative analysis method,field investigation,and draws conclusion of the characteristics of material,product,and industry of cellphone which is a typical short life cycle product.The characteristics of frequent demand change,high demand fluctuation,long lead time,and insufficient historical data reference,all lead to the inventory management difficulty of high inventory,low turnover,liability,etc.To solve the problems of inventory management of cellphone industry,this paper firstly analyzes the relation between demand forecast and order strategy for a better inventory control.Based on theoretical analysis,this paper takes L company as an example,and uses case analysis method to prove that the combination of demand forecast accuracy and order strategy adjustment can effectively lower inventory level.This solution can be applied to the whole cellphone industry.