Research On Inventory Management Of Furniture Enterprises

With the development of "Light fitting, re-decoration" home improvement ideas, home accessories industry becomes a rapid development industry which comes from gifts and crafts. The so-called home accessories refer to the ornaments and household goods which is easy to replace and easy to change the location after renovation work of residence place was completed. Such as glassware, bedding fabric, simulation floral, painting wall hangings, decorative ornaments and storage supplies. With the increasing appreciation levels of consumers and the rapid development of the real estate industry, as well as for short consumer cycle and large repeat purchase activities when compared with furniture and building materials industry, the demand of home accessories continues to surge in recent years.Before the 2008 financial crisis, most companies do not attach importance to the domestic market production of the furniture supplies. When analysis the reason for the phenomenon, we found it is because the domestic consumer demand is full of diversification and personalized characterizes. But the furniture supplies industry is a labor-intensive industry. A small number of orders and many styles is difficult to operate in a production line. With the outbreak of the 2008 financial crisis, the foreign orders occurs a significant reduction and the costs of domestic labor continue to increase, resulting in the gradually disappearance on China’s price advantage and then the original export enterprise started to engage in paying attention to and fought in the domestic market. In order to save labor costs, ease of procurement and production, manufacturers require dealers to increase the number of purchases. In fact, no matter the manufacturers or channel providers are faced with the problem of how to reserve inventory, how to manage inventory, how to reduce inventory costs, how to accelerate inventory turnover rate and how to effective forecast the impact of internal and external environment for the inventory. So many inventory management problems become the primary obstacle to the development of business and industry.Beijing Yue Mei Home Accessories Trading Company is a commerce company engaged in home accessories selling. Like many distribution companies, the inventory management has become a major obstacle for company’s business development and expansion in the process of business management. In this case, based on the enterprise research visits, combined with analysis of literature, the author analysis the pros and cons of various types of inventory management methods, to seek for small and medium enterprises’ inventory management methods. Meanwhile, according to the case enterprise’s empirical research, we hope to find an applicable inventory management mode.