Discussion About The Inventory Model Based On The Value Chain

The inventories of an enterprise include raw and processed materials, parts, semi-manufactured-goods, and finished-goods. Many enterprises concerned the inventory quantities, pay more attention to the inventory quantities economy when meeting the question of inventory cost, so the economic-ordering-quantity model and the zero-inventory model appear. The raw and processed materials of an enterprise maybe is the finished-goods of an upward position enterprise, the finished-goods of the enterprise maybe is the raw and processed materials of a backward position enterprise. The value chains theory consider an enterprise can be look as an aggregation of a series of activities based on a special technology by some means in order to satisfy the client demand, so inventory can be considered abstractly as a result of a series of activities. This article based on the value chains theory considers the series of activities, some increase the product value, the other no only can't increase the product value, but also waste the resource and time, increase the product cost and lessen the production efficiency, especially in the link up activities between the upward position and the backward position enterprises. Goods as a medium contact the upward position and the backward position enterprise, so the inventory quantity and modality model influence the backward position enterprise's product cost and operations efficiency. The vertical relation of the enterprises should attach importance to integrative of inventory model; create competitive advantage by inventory activity. An enterprise need reengineer its business process and organization in order to realize the integrative goal.