Inventory Management Mode, Method And Empirical Research For Manufacturers

For many reasons the enterprise contain a large inventory, so it takes a very largepercentage in the total capital, at the same time, the containing of inventory cost a lot.As a result the inventory management is one of the most difficult problems infinancial management.The decision-making problem of the inventory management can be summed upto two: 1.How many to order or produce?----about order, batch and production batchproblems. 2. When to send the order or set to produce?----the decision point of orderor produce. Only the inventory management methods which can deal with the twobasic problems can be called inventory management mechanism. From the 20thcentury, there appeared many methods to settle down these two problems, EOQ, MRP,JIT which founded on the single enterprise inventory management, and VMI foundedon the supply chain inventory management. With kinds of inventory, such as material,product in the mill and product, there are many decision-making models. In this paper, a issue of models are chosen to deal with the material, product inthe mill and product problems management. With the research on inventorymanagement modes and inventory maths matrix, the final aim of this paper is to showa resolvent on all kinds of inventory problems, and the feasibility will be proved byintroducing the case in Hisence company. There are two primary tasks in the paper,the first is to compute the best mode by maths, and the second one is to prove themode got in first step is feasible by practical case analysis.