Inventory Management Optimization And Implement

It is very important for the inventory control under the high competition and fast changing marketing situation. Inventory not only affect the warehouse cost and currency occupation but also affect the service level and reaction speed to the customers. Therefore, it is a key question for a company to have proper plan and method to control the inventory.We take Cooper tool division as study object to discuss the inventory problem. For small volume and multiple types production mode the components quantity is big and the components have some common using. The components lead time is long and the finish goods demand is not so clear. It brings high requirement for the inventory management and makes the inventory optimize very important. There has the SAP system in this company. We try use the basic data from SAP system and develop the optimizing and sales forecast program to help the inventory planning and ordering process. We take the supplier chain theory and gray forecast theory as the method for this study. When the program and data base are ready we use it the drive the inventory set up and continuous follow it.There are many facts need to be considered for the inventory problem. One is the material inventory strategy optimizing and the other is who make a good sales forecast. The purpose we study the strategy and forecast is to make a fitful inventory level and amount to meet the customers'requirement for the products. If we can do that we can make good inventory turns and meet for the deliver request.The first step is set up an inventory optimize module after study each items which will affect the inventory strategy. In this module we will take the data from the SAP system as the basic of the program. In study we will consider the items like inventory turn requirement, unit purchase price, purchasing cost, the purchase lead time, purchasing lot size limitation, quality problem, etc.. For will define the strategy for each item and put them into the program before it start to run. It can say that the basic items are the control limitation of the inventory set up.Second, we will use the gray forecast method to use the limited on hand sales data to give reasonable sales forecast. That will be the start input of the program running.Put the inventory optimize module and the gray forecast module together and develop the program base on the SAP data we can get the inventory requirement quickly and easily.There have many key items were improved after this project implement.The warehouse space was deduced and the inventory turn rate were increased. The on time deliver rate and material analysis process were improved. And the all the components inventory set up meet their martial characteristic.