Research On Inventory Management Optimization For HD Company

Now the competition between all walks of life is increasingly fierce,but the current economic development is gradually slow,the profit of Chinese manufacturing enterprises is also shrinking.In order to improve the business capacity and occupy more market share,enterprises need to reduce their operating costs and increase their cash flow.Optimization of inventory management can reduce the cost of inventory expenditure,if the use of rigorous management means and the use of scientific optimization method,can reduce the cost of inventory at the same time improve the turnover rate,reduce inventory accumulation occupied by the cash flow of the enterprise,the enterprise operating cost minimization,conducive to the development and profit of the enterprise.As a multinational manufacturer of commercial shading products,HD supplies 80%of its products to the domestic building materials market.As HD company is located at the upper end of the whole supply chain,the customer demand forecast is obviously affected by the bullwhip effect in the transmission process of the supply chain,and the forecast fluctuation is difficult to predict and the range is large,which leads to high idle inventory of HD company and great pressure on inventory cost.At the same time,nearly half of HD’s raw materials are imported,and its delivery cycle is very long.In addition,due to the COVID-19 pandemic,international transportation requirements are more stringent than in the past,making it more important to optimize inventory management.The research content of this paper is how to optimize the inventory management of HD company.Through a comprehensive understanding of the current situation of inventory management of HD company,the problems are found.Combined with the theories and methods related to inventory management,the problems are analyzed and studied to find out the optimization method and improve the current situation.This paper introduces the background,significance and method of inventory management,and uses the theory of inventory management,the demand forecasting model and the calculation method of safety stock.This paper puts forward the existing problems of HD company,and optimizes the inventory management of HD company through the selection of appropriate demand forecasting model,the setting method of safety inventory and the optimization of the processing process of stagnant inventory.Finally,it puts forward the optimization and guarantee measures.