A Company Study Of Material Inventory Management With The Cooperation Of Supply Chain

There exist various problems in the supply chain management in many industries today. Lack of cooperation results in the increase of all processes in the supply chain, such as, inventory in manufacturers, safety stock, storage space, business risks, and further results in the decrease of profit margin. Thus, it is very valuable to figure out solutions to minimize inventory and risks, meanwhile maximize profit margin.The pace of modern science is fast. So does the change and development of enterprises. The life cycle of products is getting shorter and shorter. Enterprises make less and less profit while they only rely on the new technology and improvement of engineering. While the enhancement of "service" concept becomes another source of profit, Logistics becomes one of the major sources of increasing profit. Thus, the reduction of the inventory in supply chain becomes a significant solution of profit increase.The condition setting is the cooperation of all links of supply chain. The target function is the reduction of the whole inventory in supply chain. The goal is to reduce the pressure of inventory and to mitigate business risks also.A Company is a China branch of German-invested enterprises, which are specialized in manufacturing and distributing energy-saving and warm-keeping type of products for China domestic construction business market. Their main products include internal decorative coating, wall paper, and external warm-keeping products. The demand of expanding sales in a national scale starts from Y2006. Currently A Company has two factories located in Shanghai and Langfang separately and three distribution centers located in Beijing, Shenzhen and Chengdu.The control of inventory level definitely involves all processes in supply chain. This thesis takes the example of A Company to indicate that the solution of cooperation of supply chain can reduce inventory in all parts of supply chain. This thesis applies MBA theories into practice by establishing a practicable operational model and pushes every part of supply chain to reduce inventory so as to mitigate business risks and maximize profit.