China Petrochemical Enterprise Inventory Management Research

Petrochemical companies are the biggest companies of state-owned enterprisesin China. With rapid economic development, petroleum and chemical industry hasbecome an important pillar industry. The production characteristics of oil refiningdecide the special place of inventory in the petrochemical companies. After enteringthe 21st century, the competition among petroleum products becomes more severely,it is very important to enhance the level of inventory management. And the inventorymanagement has become an important approach to improve companies'competitiveness.In our country petrochemical companies' administration mode has alreadyreached the basic mode which is used by most advanced companies, but there aremany problems in the inventory management area, such as overstock and unscientificconcept of inventory management. This paper points out the main problem, andanalyses the reasons after introducing the actuality of inventory management inpetrochemical companies. In the last part of this paper, the author gives some advicesto improve the grade of inventory management, such as carrying out JMI, adoptingscientific inventory control methods. The author hopes these advices can help thepetrochemical companies to decrease logistics costs and increase sales.