Datang Group, Which Produces Materials Inventory Management

The inventory management of power plants indirectly relates to those companies production safety, benefit and competition. China Datang, as a huge group with many power plants all over China, meets the challenge that how to increase the level of inventory management and at the same time makes sure all the inventories are reasonable. The task that how to ensure material to flow efficiently among power plants and at the same time keep low level inventory is one of the main topics that the group should study currently.In a long term, under the management system of planned economy, inventory in power plants is out of control due to lack of scientific management and a whole harmony. It resulted in many problems such as occupying much cash flow. Moreover, it wasted a lot of manpower and resource due to material overstock with much discarded as useless or even seriously affected electricity production.This dissertation is based on the investigation of Datang's power plants, it classifies and analyzes the data from the investigation through statistics and it's rationality was also proved by classic inventory model. Then, it identifies the problems of power plants' inventory. It also puts forward potential solutions which will be possibly implemented by the group.The management method of Datang discussed in this dissertation is also fit for other power groups. The method can guide the power groups to establish production material inventory strategies, set up reasonable logistic system, modulate inventory structure in power plants of a group. Thus, it can ensure production safety, avoid inventory overstock, decrease inventory cost, which can result in higher capital efficiency and better economic benefits for the whole group.