Research On Optimizing Inventory Management Of Snowplus Company

In the context of sustained economic development,people’s health awareness is continuously enhanced,and the major tobacco consuming countries in the world require more and more strict tobacco control measures.The new tobacco market has become the darling of the global capital market.Electronic cigarettes are favored by the majority of consumers because of their convenient use and low price,and the quality of their inventory management directly affects the total profits of such enterprises.Snowplus Company is one of the leading e-cigarette brand enterprises in China.In past two years,its market share has occupied the top five in the country.Currently,the company has three problems in inventory management: slow inventory turnover,not optimistic inventory cost,and large error in commodity demand forecast,which lead to the high total inventory and constantly rising inventory holding cost.Seriously affect the improvement of total profits of enterprises,so the optimization of inventory management needs to be solved.In this paper,the inventory of Snow Plus company is selected as the research objective.Firstly,through analyzing the current inventory management status of Snow Plus Company,it is found that the main reasons leading to the inventory management problems are unscientific demand prediction,simple commodity classification,weak management system and unscientific ordering strategy.Aiming at these four reasons,the inventory optimization design is carried out.Inventory classification is carried out through ABC classification,and the most matching demand forecasting method,ordering strategy and inventory management strategy are designed for class A,B and C inventory.Finally,reasonable implementation plan and safeguard measures are formulated for the optimal design scheme,so as to optimize the current inventory management of Snow Plus Company.In this paper,through the analysis of the past data of the goods in stock of Snowplus Company,the ABC classification method is used to divide the inventory into A,B,C three types,aiming at the three different types to design the most appropriate inventory management scheme,which reflects the idea of inventory management through commodity classification.The conclusion of this study can actually solve the problem of inventory management of the company,improve the total profit of the company,and also have a good reference significance for related problems in the industry.