Research On Sourcing And Inventory Management Strategy Of Production Auxiliary Materials In A Coal And Electricity Company

In recent years, as the continuous and rapid economic growth of our country, the demand for coal products of the whole society is strongly increasing. At present, the production of State-Owned Large and Medium Sized Coal Enterprises is nearly in full load, which cause the consumption of the production auxiliary materials increases year by year. In addition, there are more than 20000 kinds of the production auxiliary materials in coal production, so it is very important to carry out effective sourcing and inventory management in order to pursue maximum profit. The research makes study of the sourcing and inventory management model in the material supply department of A Coal and Electricity Company. On the basis of the investigation of the enterprise's sourcing and inventory management status, an inventory management model which combining ABC classification and fuzzy classification for inventory management is proposed, and corresponding sourcing and inventory strategies are put forward to reduce workload and increase efficiency and reliability. This paper focuses on the inventory management classification of production auxiliary materials and the formulation of a corresponding sourcing and inventory management strategy in A Coal and Electricity Company. Several achievements have been gained as follows:1. The approach combining ABC classification and fuzzy classification is introduced to classify the inventory items, and it has the advantages of handling variables with either nominal or non-nominal attribute, incorporating manager's experience and judgment into inventory management, simpleness of implementing and high accuracy compared with the traditional ABC classification whose evaluation index is just capital possession cost. And it has its rationality when used in the classification of materials in enterprises.2. By using the approach combining ABC classification and fuzzy classification, the traditional ABC classification is applied in material cost, and the fuzzy classification is adopted to evaluate the material criticality and difficult degree for sourcing, and then its item will be identified through comprehensive consideration. The results of classification meet the requirements in theory and practice.3. Through the means of classifying the production auxiliary materials including 20,000 categories required by production in A Coal and Electricity Company, and taking the approach combining ABC classification and fuzzy classification to divide the items into A,B and C, this method improves the enterprise's status of ataxonomic and single management, decreases workload and increases efficiency.4. According to the result of classification and the storage fundamental principle in operational research, the storage model is established, the inventory check time, order point and order quantity are calculated as well. It proposes pertinent suggestions on inventory management for each kind of material and provides theoretical basis for the enterprises to make sourcing and inventory management strategies.