Improvement Of Inventory Management Of WH Company In Supply Chain

The demand for quality of life is escalating,due to the growth of the domestic economy and the enhancement of people’s living standards.Along with this,people’s health awareness is also increasing day by day,the sales of health drugs market are growing,the overall market size of the industry is growing,and the competition within the industry is becoming increasingly fierce.WH Company is a manufacturer of health drugs.The rapid growth of market demand in recent years has caused the inventory management issue to become increasingly evident.This lack of goods leads to the failure of timely delivery of orders,and the high inventory is present in tandem,thus diminishing the profitability and market competitiveness of the company.The utilization of contemporary managerial expertise to enhance enterprise inventory administration is of great importance in order to hasten inventory turnover,diminish inventory capital occupation,and augment customer gratification.An initial examination of the inventory management situation in the WH Company’s supply chain environment is the focus of this thesis.Through the enterprise’s operational process,the primary issues are identified and summarized from the main links that impact the inventory,such as sales demand forecast,planning,production,material purchase,and warehouse management.The demand forecast fluctuates greatly,the plan is adjusted frequently,the production plan is not strictly implemented,the raw material stock is not balanced,and the sluggish inventory is processed slowly.In view of these problems,analyze the causes of these problems,and finally design the optimization plan of inventory management under the supply chain environment.The optimization idea is to improve both the inventory management process and the inventory control strategy.Establish coordination mechanism by using S&OP process to balance demand and supply.Standardize the production planning process to ensure the effective execution of the production plan.Optimize material purchase plan.Optimize the handling process of idle inventory.Adopt inventory management mode such as ABC classification and VMI mode.Through the implementation of the optimization plan,it is expected to improve the coordination and balance between demand and supply of WH Company,which is beneficial to WH company to improve the inventory turnover speed,improve the inventory management level and improve the current situation of high inventory.It is our wish that the findings of this thesis will be of assistance to other similar firms in the same sector in terms of inventory administration.