Research On The Cost Control Of Z Company In Supply Chain Environment

China is a great agricultural country, grain production is bound up with national welfare and people’s livelihood. With the opening of the grain market, the competition between grain purchasing and marketing enterprises grows increasingly fierce. The enterprises turn their attention to cost control. Being different from the manufacturing enterprises, grain purchasing and marketing enterprises take inventory as productive and operational element. The inventory cost accounting for a large proportion of the total cost is the primary cost in grain purchasing and marketing enterprises. So it’s particularly important for these enterprises to consider how to control the inventory cost.Located in a county-level city of the central section of Jiangsu Province, Z Company focuses on grain purchasing and marketing. The central section of Jiangsu Province is the important base of commodity grain and cotton in China, which possesses the abundant land,cultivated area and agricultural and sideline products. Besides, more rural surplus labor here will provide the lower production and transaction cost. So researching the method of inventory cost control of Z Company is meaningful for the central section of Jiangsu Province even the whole nation to refer to.Based on the above background, this article has studied the cost control of Z Company. On the foundation of summarizing the inventory cost control’s research background and overseas and domestic research status, this article describes and analyses two points, the first is the basic concept of inventory management and its cost control, the second is the theoretical basis of supply chain management and operations management concerned.Meanwhile,it illustrates the benefit and importance of inventory cost control and researches the constitution present situation of the inventory cost. The inventory cost of the company is also analyzed by adopting quantitative analysis method, the article summarizes the relevant features of inventory turnover and inventory loss cost of this company. Then I analyze the main measures the company takes currently and the drawbacks existing in the aspect of inventory cost control. In addition, I put forward the improvement scheme for cost control of this company based on supply chain.The last is the conclusion of the whole paper and the outlook for the future research. This article researching the case of Z Company proves the feasibility and necessity of grain purchasing and marketing enterprises’inventory cost control.