Panzhihua Power Generation Company Supplies Supermarkets "management Mode Applications

1.Purpose and Significance The electric power industry is not only the basis for national economic development that should be given priority, but it is also acknowledged as an industry that naturally necessitates a monopoly. As our nation has entered WTO and our government has carried out significant reforms in the electric power system, the competition in power generation is encouraged by carrying out "separating plants from the power network, operating power networks through bidding policy". The five largest power generation groups in the whole nation, including the China Huadian Corporation, have been ready to compete. Profound changes have occurred in the market environment and reducing the producing and operating costs and actively participating in market competition have become the important actions taken by power generation enterprises. In order to reduce the production and operating costs of the thermal power plants, like Panzhihua Power Generation Company, measures must first be taken to lower the fuel costs, overhauling costs and material expenses because they make up the greatest proportion in the overall costs of the thermal power plants. The material management mechanisms of Panzhihua Power Generation Company should be reformed and the internal logistics management of the enterprise should be integrated to achieve optimized integration in management and utilization of resources by way of application of a "material supermarket", which will promote the cost operation of the enterprise and finally fulfil the objective of reducing the costs of the enterprise and raising its market competitiveness.2.Basic Clue and Logical ConstructionThis paper begins its probe from the traits of the electric power industry, the present situation of the electric power market in Sichuan,the situations that Panzhihua Power Generation Company faces and the cost structure analysis of the Panzhihua Power Generation Company and then analyzes the current material management mode and a good many existing problems by applying the modern logistics and supply chain management theory. The paper attempts to creatively put forward the thought of applying a kind of advanced inventory management method, Vendor Managed Inventory (VMI), in the supply chain management environment to the logistics management integration of the company. It also states and the effects of embodying the VMI management policy by way of the supermarket that will cause the materialization of a modern retail commerce with strong competitiveness. The paper also goes on to conduct penetrating analysis on the operating method of the management mode of the "material supermarket".3.Main ContentChapter 1Present Situation of Domestic Electric Power Industry and the Issues that China is FacingThis chapter mainly introduces and discusses the characteristics of the power industry, the basic situation of power market in Sichuan Province, the information about China Huadian Corporation and Panzhihua Power Generation Company, the challenges and opportunities that Panzhihua Power Generation Company faces and other topics of concern. The paper also points out the urgency for innovation in the management of Panzhihua Power Generation Company so as to raise its market competitiveness.Chapter 2Cost Structure Analysis of Panzhihua Power Generation CompanyThis chapter mainly aims to introduce and analyze the cost structure of the company, discover the main factors that affect the cost and puts forward the integration that should be conducted on internal logistics management in order to fulfil the objective of reducing theproduction cost and raising its market competitiveness.Chapter 3Concept of "Logistics Supermarket" and its Operating MethodThis chapter is the key point of this thesis. Starting from the analysis of the current material management mode and the several existing problems of Panzhihua Power Generation Company, it advocates the thought of applying the advanced inventory management policy, Vendor Managed Inventory (VMI)...