The Research Of Inventory Issue Of A Company

Inventory that is an asset standing on the point of asset of accounting and a cushion to keep normal production and continuous operation is necessary to deal with indeterminacy. However, in economics, it is a waste and opportunity cost, extremely sunken cost for inventory not to be used for other investment. Besides, it that comes to berg in management or submerged reef conceals all problems in management.This thesis studies the actual problem of A Company in inventory tightly combining with inventory theory to improve this issue for reducing inventory cost, management efficiency improvement and competency of competition to A Company as well as maintaining No.1 in the line. It states the background which affects the issue in marketing structure and macro-environment and the strategy of A Company. It measures and analyzes this issue with data in inventory turn over, asset rate, inventory structure, finished goods composition, correlation between backlog and inventory and ABC classification. It analyzes causes of the issue and find out its root causes that are the system of behindhand supply chain management, among the members in supply chain, trust crisis in supply chain members, laggard logistic, incertitude demand, logistic decision -making system internal A Company, inner process issue and motivation system and behindhand technology in control inventory . It also brings forward possibility to improve and it provides strategies or suggestions to improve the issue, including changing logistic decision-making system, implementing Just In Time, Value Stream Management, Kanban, ABC classification, Business Process Re-engineering, Water-cock, Enterprise Resource Planning, Vendor Managed Inventory and localization. Basing on above, it provides evaluating system for improvement performance and control metric for ensuring improvement results and keeping continuous improvement.