Raw Material Inventory Structure Optimization Plan Of Sheheng Special Steel

Continued rising of iron ore price,exacerbated market competition and rapid decline of demand growth, make iron and steel enterprises facing increasingly serious situation.So, China's major iron and steel enterprises explore new ways of management actively, abandon the traditional mode of supply, strengthen the innovation management of procurement, will cost reduction and efficiency boost as top priority. In this case,use the advanced management methods and mathematical models to determine structure of raw materials inventory reasonably, enables enterprises to meet production needs,in the same time, reduce unnecessary inventory costs, accelerate cash flow of enterprise, is an important method to improve the level of corporate profits.This paper take inventory optimization of Shiheng Specila Steel as the subjects,according to collect,organize domestic and international market theory, analysis the macroeconomic situation and the steel industry situation, summed up the main supply chain inventory problems in current steel industry are:stock takes more money,Volume,price instability,lack of supply chain overall planning and so on.Shiheng as a private enterprises, in the development process of recent years, inventory also highlighted:small storage space of raw material, quality surplus, scattered supplyers and difficult management, asymmetric information and so on.Come up with the inventory management of Shiheng Special Steel, this paper targeted development, worked out a simple and practical solutions for inventory optimization, the main measures are from five aspects:planning storage space, establish and applicate cost-effective data model, implement quick response (QR) inventory policy, choose and culture reasonable supplyers, construct crisis management mode. In this paper,we use mathematical models, dynamic simulation and other methods to analyze, demonstrates the feasibility and scientific of the implementation of the five measures. Particularly establish the cost-effective data analysis model, taste for raw materials and components, through a series of changes in estimates, fully consider all elements of the degree of influence to the production, with the procurement of resources, quantity, etc., calculated the optimal cost of production timely, conducive to achieving maximum business benefit.The application shows that:Shiheng Special Steel raw material inventory optimization achieved remarkable success, not only meet the needs of production but also reduced inventory costs, accelerate the turnover rate of funds of enterprises, Our main product costs stay ahead in the industry level. Shiheng Special Steel inventory management planning consistent with the scientific concept of development, highlight focus, determined direction, have significance for enhancing the competitiveness of enterprises and achieve sustainable development of practical.In addition, Shiheng Special Steel's cost-effective data model, rapid response mechanism and crisis management mode, etc. have a strong reference for the development of other steel companies.