Research On Optimization Of Inventory Management For X Chemical Company

With the rapid development of technology,the automobile,communication,and consumer electronics industries have made rapid progress.The market for electronic chemicals serving above mentioned industries is highly competitive.Company X,which is engaged in the research and manufacture of electronic chemicals,aims to improve its competitiveness in the market by optimizing inventory management to reduce inventory management costs and the risk of out-of-stock,and to achieve cost reduction and efficiency gains while increasing customer satisfaction.Periodic shipping-related costs and warehousing and transportation costs are the main part of the operating expenses of Company X.There are many kinds of electronic chemicals and large amounts of individual products,and most of them are acids and alkalis or contain heavy metals,so high requirements are needed in actual production,storage,transportation,and use.Most countries have clear laws and regulations on the production,storage,transportation and using of chemicals,which increase the operation cost of chemical manufacturers.Inventory management is an important part of a company’s operation management.The inventory quantity and inventory turnover rate directly affect the cash flow occupation of a company.Company X needs to resort to a theoretical weapon in the field of inventory management to solve its practical problems.After analyzing and comparing various supply chain inventory management models,this study finds that the Vendor Managed Inventory(VMI)model is a realistic guide to solve the challenges faced by Company X.After examining the development history,organizational structure and development environment of Company X,this study proposes specific optimization measures under the VMI model,which mainly include four measures.Firstly,integrating the actual situation of Company X and the characteristics of electronic chemicals industry,we build an inventory management model under VMI model in terms of logistics and information flow,and adopt the idea of supply chain inventory management for Company X.Secondly,adjusting and optimizing the demand forecasting method to improve the accuracy.Third,establishing a standardized safety stock setting method to improve customer care.Fourth,improving the efficiency stability of third-party logistics by establishing logistics carrier standards and strengthening the management of third-party logistics companies.Additionally,based on the VMI model’s requirements for timeliness and accuracy of information transmission,we need to adjust the management system and improve the management information system.Meanwhile we need to pay attention to the organizational structure,manpower and management system of Company X to ensure the implementation of inventory management optimization measures.So that Company X’s inventory management can be improved and enhanced in a practical way,and ultimately enhance the company’s operational capability and market competitiveness.