Research On Raw Material Inventory Management Optimization Of S Company

In the current pandemic era,COVID-19 has not only disrupted people’s trip,but also created unprecedented material supply challenges for businesses.And Sino-US trade friction,uncertainty of global geopolitical,the reconstruction of the world trade structure,commercial and industrial chain transfer.In the face of the new economic environment,customers,costs,risks and efficiency are the challenges facing enterprises.Multinational companies in China should pay special attention to and improve the stability and flexibility of raw material supply,but this also increases the difficulty of raw material supply management.Based on the raw material inventory management of China branch of S Company as the research background,through the study of the data analysis of company,as well as the interview of department head,determined the company S inventory management of the four major problems: the classification method is single,appear shortage and overstock,raw material inventory’s value is high,monthly overdue material scrap is high.The reasons of the problem are: Firstly,the material classification is not accurate and the safety stock setting is not rigorous.And optimize the occurrence of material uncertainty.Secondly,the demand forecast accuracy is low.Thirdly,the inventory management strategy is single and the process is not standard.Fourthly,the quantity of overdue material stock and the scrap quantity is high.In view of the above problems and reasons,respective solutions are proposed:Firstly,ABC-XYZ classification method is adopted for material classification management,and increasing the dimension of demand stability of materials.And materials are classification according to strategic materials,key materials,lever materials and general materials,and optimize the safety inventory of various materials;Secondly,strategic materials and key materials choose time series demand forecasting model,comparing and verifying the advantages and disadvantages of Holt and Winters model,and choose Winters model as S company’s strategic materials and key materials demand forecasting model;Thirdly,lever materials optimize the minimum and maximum consignment inventory and consignment management process;Finally,the general materials optimize the regular non-quantitative ordering method and each period of purchase quantity.Through the above optimization solutions,it is expected to optimize the inventory management,reduce cost,increase customer satisfaction,and provide greater value to customers.