The Study Of The Overseas VMI Stock Optimization For Company N

The rapid development of economic globalization has provided unprecedented opportunities for Chinese manufacturing industries,many domestic enterprises in China started to implement VMI model for the overseas trade by establishing VMI warehouse to obtain equal competitiveness and delivery advantages over the local competitors.Nevertheless,beside the generic problems that traditional warehousing may confront,the VMI warehousing also has many other problems,such as long lead-time of cross-border transportation,uncontrollable elements of the arrival time,etc.Together with the fluctuation of potential demands from customers generating by the market,there will be a problem of the polarization of stock for VMI warehousing,and the excessive levels of stock or shortage has turned out to be a dilemmatic issue for all the companies.Consequently,basing on the premise of delivering in a timely manner,all the companies have to optimize the stock level of the VMI warehouse,decrease the risks of products becoming obsolete,reduce the storage costs and minimize the detrimental effect on the organization’s cash flow.In the current fierce market competition,the key points above have become core competitiveness for the companies over its competitors.As one of the largest turbocharger manufacturers in the world,optimizing the stock in the overseas warehouse has been a key topic for Company N.This thesis spread the research from inventory management theory and combines with the practical condition of the company N,aiming at having a deep analysis on stock issue in EU warehouse with tailored corrective measures and address some effective improvement plans.Firstly,split the products into five categories with the ABC-XYZ Classification matrix.The first category includes the parts with constant and strong demands,instead of using the one-size-fits-all solution to build up stock,calculate safety stock quantity with quantitative calculation on the demands by considering all uncertainties elements and combing with the parts availability target.The second category are parts in high fluctuation status,by using the method of moving average Model,exponential smoothing Model and the Holt exponential smoothing Model to have an effective planning on the delivery and find the most optimum way to build up the stock.The third category includes the parts in the process of ramp up and ramp down,using the way of qualitative analysis to build the stock.The fourth category are the parts with small quantity but varied items,by increasing the minimum stock quantity to reduce the production and transportation cost.For the fifth category of after marketing parts,use the close order and send to the plant directly instead of building stock in the TPL,meanwhile,we can take the advantage of the China-Europe Railway Express.The research of this paper will not only to be optimizing the overseas stock,saving operation cost and improving the competitiveness for company N,but also can give a good reference for Chinese manufacturers especially for the competitors that also in turbocharger field.In the same time,it will offer a new idea for the stock management of overseas warehouse for many other Chinese enterprises.