The Inventory Management Of Guizhou Hongfu Ammonia-Phosphate From The Supply Chain Management Perspective

From the perspective of supply chain management, this dissertation aims to study the suitable conception of, the operating means of, and performing techniques of the inventory management of Hongfu ammonia-phosphate of Guizhou Hongfu Industrial & Commercial Development Co. Ltd (hereafter called Hongfu), a company which plays a significant role in phosphate-compound fertilizer industry of China. The dissertation attaches great importance to being applicable, forward-looking operational,and novel of the inventory managing resolutions.Based on a comparatively thorough investigating, this paper reaches a good-extent analasis on the business operating environment o f Hongfu ammonia-phosphate, including the supply and demand status, market share distribution, the industry growth, the strength and weakness of Hongfu, the competition structure faced by Hongfu, and the comptition strategy that Hongfu should employ.The dissertation summarizes the role and function of inventory management viewed against supply chain framework, essential nature of inventory, inventory classification, and the factors affecting inventory level, and the goals which the Hongfu inventory management is supposed to reach, etc.Based on the historical sales data of Hongfu ammonia-phosphate, a suitable andindispensable demand forecasting model for inventory management is found. With the actual sales data, the demand forecasting model has been testified and proved to be reliable.The inventory items to be managed have been determined based on the related producing process, the ingredient requirements and the material-consuming indicators. Through the example of demand in 2004, the required practical calculation formulas, decision tools, and the actual steps for cycle inventory and safety inventory management between any adjacent firms of Hongfu ammonia-phosphate supply chain are presented, and the managerial levers from inventory management perspective to improve the performance and to decrease the cost of Hongfu ammonia-phosphate supply chain are carried out, so are the deduced inventory management policies.Finally, through the example of a key market of Hongfu ammonia-phosphate, the dissertation points out the barriers to optimizing Hongfu ammonia-phosphate inventories, and brings about applicable solutions to remove the barriers through employing the simulation tool and exploiting quantity flexibility contract.