Laizhou Automobile Raw Materials Inventory Study

Laizhou Capco Machinery Co., Ltd. is a corporation professionally handling both brake discs and brake pads. While for brake pads, as it is a newly developed program, there are many disadvantages on stock management. Brake pads is made up of fitting parts (which has relationship with part number) and friction material (have no relationship with part number). At present there are two conditions on supplying of raw materials. The supply for one part of material is timely and reliable, but for the other part is often now and then , so it has to increase the incoming batches .Even when there are enough stocks, we still have to inform supplier to continue to supply material. In this case, the stock is always large. Because of unbalanced orders, the supply of fitting parts is always fluctuating in a large scale. Therefore we have made a stock for every part in advance, the stock is becoming large. At present large stock have engrossed too much bankroll, which increases the cost of products and declines business profit of the corporation. Aiming at the present condition, judging by the principle of stock management and supplier management, we are able to confirm the stable suppliers by doing investigation, evaluation, selection and annual evaluation on them, to establish a good fellowship with those stable suppliers on the basis of contribution, friendliness and perspective, which have assure the timely supply of raw materials with good quality and quantity to Laizhou Capco Machinery Co.,Ltd. This also establishes a good foundation of declining stock. At the same time, pay attention to solve the problem of making order batches economically, and order quantity on the basis of doing forecasting on the sales of brake pads, so as to make stock cost much more lower. On the cut-in point of brake pads stock, this paper mainly introduces general principle of stock management, analyses the condition of suppliers, does a research on how to lower down material stock, so that on the same time of keeping enterprise's production and business activity stably developed, we are able to decline the cost of enterprise and increase economic benefit.