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The Research Of Optimising Company A'S Purchasing And Supply Problems

Posted on:2006-09-16Degree:MasterType:Thesis
Country:ChinaCandidate:Q LiFull Text:PDF
GTID:2189360212455892Subject:Business Administration
Abstract/Summary:PDF Full Text Request
With the competition in market place getting more and more serious, purchasing is now regarded as much more important than before. It can lower the raw material price, decrease the stock level and improve the quality. However, nowadays the demand of the customer is becoming more and more difficult to be forecasted. This creates a lot of problem in the purchasing and supply process, therefore an optimized way shall be found to improve the situation.In the supply chain area, there are many theories regarding purchasing and supply, among which some are very modern and already proven to be correct in practice, like ABC stock analysis, product matrix analysis, JIT purchasing and VMI management. In the article, the author lists all the theories needed to settle the problems proposed.Company A is a big joint venture producing products for information industries. It has four business unit and a united production operation platform. Each BU has functions including R&D, Marketing, technical support and customer service. The purchasing and production are centralized by the production operation platform. Company A use a lot of raw materials, which have big difference in value. The characteristic of the company's current purchasing model is that the purchasing and supply functions are separated and the purchasing of raw material is leaded by the demand forecast offered by each BU.In current purchasing system, a lot of problems occur including shortage, overstock and high stock cost. There are three kinds of reason lead to these problems, which are the changing of the real demand, the disadvantage of the current system and purchasing organization structure disadvantage.The author uses the mentioned theories to optimize the problems step by step. ABC stock analysis is used to improve the system. The product analysis is used, which lead to four types of company's raw material. Different methods are applied to different type of products. Furthermore, a multifunctional...
Keywords/Search Tags:Stock, ABC stock taxonomy, Product matrix analysis, VMI management
PDF Full Text Request
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