Small And Medium Manufacturing Enterprises Raw Material Inventory Management

Inventory management is an important function of business administration ,it not only has an direct impact on the floating capital turnover of enterprise ,but a critical effect in terms of service level .Along with the development of market economy ,inventory management is entitled with more connotations and functions ,and being appreciated by theorists and entrepreneurs .Improving inventory control is an effective method to increase the energy of enterprises ,reduce their operating cost ,and strengthen their competences .In most of production enterprises of China , especially in small and medium-sized manufacturing enterprises ,there are some problem with outdated inventory method and heavy inventory ,which lead to a high inventory cost and the lack of quick response to the change of market .The inventory management is becoming a bottleneck to the survival and development of enterprises.Firstly ,this paper analyze the status quo of the raw material inventory management on the actual situation of the small and medium-sized manufacturing enterprises ,discuss the importance of strengthening raw material inventory management .Secondly ,the paper propose a set of solutions of raw material inventory management according to the characteristics of such enterprises ,which including the combined of the MRP and ABC to manage the raw material ; based on MRP ,use ABC to solve some problem such as the determination of the order quantity and safety storage .In addition ,the paper use fuzzy evaluation to improve the ABC method and stress the problem which should be focused to solved in MRP ; give a proposal for the selection of the information system in the small and medium-sized manufacturing enterprises ; give a method to manage the suppliers .Finally, an in-depth research on the status quo of inventory management in The Xinxiang Automobile Electric Co. Ltd. was made , some improving measures were proposed and economic result was analyzed.