T-inventory Optimization Strategy

Inventory control is a really complicated and tough task which has been fully recognized by people who work with logistics and supply chains in OEM enterprises. Because they always face situations like sudden and large quantity change of customer demands, lead-time shortening, components, raw materials and finished goods can not be delivered on time, and high stock levels.The objectives of inventory control are to serve customers with on-time deliveries, keep stock levels down to make cash available for other purpose, and decrease overage, excess and surplus stocks. Inventory control runs through the whole process from customer demand forecast, in-house handling, production and materials planning, purchase order placing and committing to the storage and issuing of raw materials and components, work-in-products, finished goods.Unbalance of demands and supplies lead to high level stock. To focus on the accuracy of customer's forecasting demand is crucial to smooth production scheduling and materials planning. And to ensure the accuracy of stock has a substantial meaning for decreasing buffer stocks in practice. Materials planners and buyers spontaneously make some buffer stock to prevent unplanned shortage caused by inaccuracy of stock which accumulates to a large amount day by day.The thesis takes T-company as a research subjective, reveals reasons that lead to its high level stock, proposes to enhance the efficiency of inventory control through improving the accuracy of customer's forecasting demand and its own stock data, and also emphsis the importance of periodically reviewing on the structure and total amount of inventory. Proposals have been put in to practice and some improvements have been showed. Hope this thesis can be a reference to people who are working on inventory control in OEM enterprises.