Inventory Management Of Manufacturing Industry

To research into the inventory management of the manufacturing industry is important and necessary. Inventory, which accrues in such production and enterprise operating processes as purchasing, manufacturing, selling and so on, is the essential part of enterprise management and performance. Of the total expenses of an enterprise, the money spent on inventory accounts for 20-40 percent Therefore, an enterprise will remain in enterprise and develop comprehensively, coordinatedly and sustainably if its inventory is well managed.In this thesis the status in quo of the inventory management in Changzhou Tractor (CT) Group Co. is first illustrated and the problems are identified. Then the methods of system dynamics are used to do the research. Based on analyzing the factors that determine the inventory management, a dynamic model of the inventory management system for CT Group Co. is developed, of which raw materials inventory and manufacturing goods inventory are included. Multiple factors or variables are taken into account and a series of system dynamic formulas and equations are established. Finally, the model of Vensim simulation, which simulates the inventory management dynamics of the manufactured industry, is tested and examined, and thus the model proves to be both reliable and valid. It is hopeful that the zero inventory management is practical in the raw materials inventory in the manufacturing industry and the strategy for the inventory management in the manufacturing industry is put forward.