The Research Of Procurement Optimization And Inventory Management For SG Company

Enterprises are facing serious challenge of marketing competition and homogenization competition by the global economic slowing down.Especially,manufacturing industry is in a dilemma,because of inflation of prices,labor cost increasing and oppressive policy of environment control.Developed countries have begun the new business management mode strategically which is different from the traditional management for enhancing the competitiveness,also concentrate on the optimization of the whole supply chain.In this mode,from downstream to upstream enterprises,with the core enterprise as center,all enterprises are linked together and strengthening their cooperation to achieve an all-win result.China as a manufacturing plant all over the world,it is of profound significance to study the problems in chains of manufacturing suppliers.Combining vendor,inventory management theories and the virtual conditions of SG Company,this thesis analyses the current problems and points out the reasons.Referring to current problems on procurement-process and inventory management in SG,propose a solution of optimization by value stream analysis,by using(s,S)inventory model work out the optimal replenishment strategy,by simulating two-level’s VMI inventory model under(s,S)model demonstrate the effectiveness in reducing inventory level and inventory cost.The purpose of this thesis is to reduce the high costs,build a strong and flexible supply chain and enhance the competitiveness of enterprises,also provide reference for other enterprises.