Study On Inventory Management Of PM-China

Inventory management is an important content during the operation of enterprises, it not only affects the turn over of liquid cash, but also vital to customer service level. Keeping more inventory can improve customer's service level, but it will cost too much fluid cash, and it will influence the operating cost of the enterprises; keeping fewer inventory can decrease the cost of fluid cash, but it is easy to cause the short of production material, influence the production and business of the enterprises. So how to balance the decrease of inventory and improve customer service level, how to manage inventory and set a reasonable inventory level is the core question of all enterprises.This paper introduces the concept of inventory and inventory management, and then introduces the related theories of material management method, purchasing order method, marketing requirement forecast method and performance evaluation. This paper chooses PM-China as a study case, have a short introduction of the company's basic information and operation, from organization structure, material management method, purchasing order method, purchasing strategy and marketing requirement forecast method to analyze current inventory questions, introducing some suitable improvement methods and their detailed case execution to PM-China, the methods also can popularize to other medium-size and minimum enterprises.