Research Of Inventory Control In Cable Industry

Inventory controlling is one important part in enterprise management, excessive inventory could make the enterprise pay excessive fees such as warehouse-rent and insurance and tie up much fund which make circulating fund lacked. Moreover, excessive inventory could grow out of date , becoming wastes or being sold in a by far low price, which decrease profits of the enterprise. Therefore enterprises always try their best to cut down their stocked level. However, the deficiency of storage could disable the enterprise to meet it customers' demands in time and lost sale profit, consequently make it lose in marketing competition; for such reason enterprises have to keep rather amount of inventory, normally, excesses and deficiencies of inventory (of different items) exists in the same enterprises which obstruct it much from developing.In order to meet the demand of marketing and management of enterprises, it is necessary to control inventory scientifically.Inventory controlling is the set of methods,techniques,processes of managing inventory, which include planning, coordinating, manipulating inventory of enterprises.Its content is deciding the inventory position, the reorder point , the requisition objective for stoked items of the enterprise in terms of its profit target and the market situation; concretely speaking, the essential of inventory control is to answer: when should the enterprise order items and how much should be ordered, how high should the basic inventory, safe inventory and velocity ratio of a certain item of the inventory system be.There are two targets in inventory control as reducing inventory costs and advancing serving level, which have conflict between each other. On condition that other factors keep constant, high level of service will demand high cost, and low cost will result low serving level. Inventory control must find the balance between the two targets, i.e. get the optimum combination of them.Cable companies here means companies that manufacture industrial cables which orienting to constructional engineering and electric project. They are distinguished by the abundance of their product species, the simplicity and expensiveness of their materials for product and their half-continuously yielding pattern. To work out a suitable inventory control I ing solution of cable industry, refer to inventory controlling theories and considering the real environment of the companies are both necessary.Referr ing to theor ies on inventory control I ing, this article br ings forward the inventory control I ing model of cable industry aiming at its character i sties of manufacture and management and then designed a management information system of inventory based on the mode I?The model and the system have instructional and practical significance to efficiently control I ing of inventory in the cable industry.