Base On Empty Capsule Processing Supply Classification

Firm A is one of the world's most famous multinational empty capsule manufacturers. Since it was invested in China in year 1986, firm A becomes the leader of empty capsule industry and grows fast with the development of fast moving consumer goods and pharmaceutical industry. Though firm A has achieved great success in China, it at the same time faces with the fierce challenges from the market.Nowadays, there are more and more supply channels of homogeneous products. In order to dominate the market, firstly firm A should improve its supply capacity to ensure its consumers can manufacture in time. So firm A requires to develop its internal supplies to complete the production plan efficiently. Therefore, the supplies department (TSD) plays a much more important role. TSD should solve the problems of long lead time, accumulation of funds, and the high cost of inventory. What's more, TSD shouldtake the risk of not satisfy the consumers, which is caused by the shortage of inventory. So firm A pays much more attention to rationalization of inventory control, because the inventory control relates to the survival and development of firm A in the competitive market.This paper researches on inventory management of firm A, and proposes a procurement method which is based on empty capsule processing supply classification and a method to inhibit the bullwhip effect, and then put this method into practice. This paper has made the following researches:This paper reviews the characteristics of ABC classification and Kraljic matrix firstly. Then this paper analyzes the characteristics of several inventory control methods like ROP, VMI, JIT and MRP, and designs a classification model which is based on these characteristics. With this model, we build a relational list which corresponds to the material inventory management of firm A. On this basis, this paper researches on the current problems about empty capsule processing supply of firm A, and tries to find out the key points about inventory control. According to the inventory status of firm A, this paper analyzes the characteristics of firm A's inventory control, and uses the material inventory control model into the improvement plan, then establishes several performance evaluations and indicators of inventory management. By comparing the performance evaluation about improving inventory management, this paper tests the feasibility of different inventory control models, which is built by comprehensive apply the ABC classification and Kraljic matrix classification. This result can be a guide of firm's inventory management, and it can be referred to similar food and pharmaceuticalprocessing industries.