Study On Inventory Cost Effect Coming From Package

Traditionally, package is the end of production; therefore, the property of the product would be unchangeable. Meanwhile, during the process of ordering and stocking, different package products will be done separately. However, high demand uncertainty and forecast inaccuracy often result in obsolete inventories of some products while others stock out. Incalculable lost of the opportunity costs and expensive obsolete costs let the traditional mode of operation has been unable to meet the new requirements for the development, one way to address the problem is package postpone strategy.The basic principle of package postpone strategy is to delay the time and the place of package activity, through assemble stock management and delay the package for shipment until the certainty requirements have been received. The virtue of which lies in it can solve the increasing inventory cost comes from package personality and diversity and demand uncertainty. Postpone strategy's been widely studied and applied outbound, but most of which limited in manufacture and logistic and little expands to package area. For the above-mentioned problems, the text has deeply and comprehensively studied and analyzed package postpone strategy and the results as follows:At first, the paper introduced packages postpone strategy principles and operation mode. Established the quantify link between package and inventory with using of the theoretical knowledge of inventory management and package.Second, identified the inventory cost driving factors and its relationship with package strategy by using of active based cost analysis method, which is regarded as the basis of contemporary strategic management accounting and Lean Production and been used widely.Then, established package postpone strategy and non-packaging postpone strategy inventory cost model, and packaging strategy decision-making model.At last, the paper set DPCA as an example for other CO. to implement the strategy.