Fual Inventory And Cost Management In Powerplant

Inventory management is the key element of modern enterprise management,which is also a matter of creating enterprise value management. This paper put forward an advanced model of improvement inventory management by analyzing the S Corporation status of coal-fired and the current inventory management problems, combined with inventory management theory and characteristics of power generation enterprise. First of all, we establish a mathematical model of coal demand to determine the order point and quantity through methods and approaches of the Order Point System and MRP II System performed into fuel inventory management. Secondly, the measurement of inventory costs is discussed in this paper which combined with inventory management theory and inventory costs management theory by measuring the value to reflect the level of inventory management which has made up for deficiencies in financial accounting, and achieved integration of coal inventory operational management and financial management.Through the advantage between the Order Point System and the MRP II System and applied to inventory management, we can help enterprises take into account both the actual market demand for electricity and coal market in the coal purchase, coal-fired management as well as reducing storage costs. Both of them play a positive role in guiding electricity and fuel management. Inventory costs is reflected to be the opportunity cost most . we can use method of financial management to measure a variety of inventory costs, which will reflect business inventory costs actually. This inventory management model can meet the company operations management more effectively, and improve the efficiency of coal-fired turnover, reduce waste and realize the inventory value management, and then improve profitability of power generation enterprise.