A Case Study Of Chinontec's Inventory Management

For many reasons the enterprise contain a large inventory, so it takes a very large percentage in the total capital, at the same time, the containing of inventory cost a lot. As a result the inventory management is one of the most difficult problems in financial management.The decision-making problem of the inventory management can be summed up to two: 1 .How many to order or produce?—about order, batch and production batch problems. 2. When to send the order or set to produce?—the decision point of order or produce. Only the inventory management methods which can deal with the two basic problems can be called inventory management mechanism. From the 20 century, there appeared many methods to settle down these two problems, EOQ, MRP, JIT which founded on the single enterprise inventory management, and VMI founded on the supply chain inventory management With kinds of inventory, such as material, product in the mill and product, there are many decision-making models.In this paper, a issue of models are chosen to deal with the material, product in the mill and product problems management. With the research on inventory management modes and inventory maths matrix, the final aim of this paper is to show a resolvent on all kinds of inventory problems, and the feasibility will be proved by introducing the case in Chinontec company. There are two primary tasks in the paper, the first is to compute the best mode by maths, and the second one is to prove the mode got in first step is feasible by practical case analysis.