Study On Materials Purchasing Strategies For W Campany

Nowadays,net profit of cable industry is only 1%~2%,while raw material prices rise far more than the industry's profit margins. Therefore, building a set of raw material purchasing strategies which are scientific, rational, stable, effective and fit for copper market price fluctuations is the urgent need for the enterprises to adapt to the business changes in the market conditions and to deal with the fierce market competition.First of all, through the research of several theories, such as material segmentation, ordering model and hedging, this thesis used W company as the research object to make a clear classification of varieties of raw materials and generate a compatible set of raw material purchasing strategies according to the real dates.Furthermore, based on selective ordering strategy, this thesis built a procurement model which was fit for the actual situation of W company, established the calculation of economic order interval, target inventory levels, reorder points, safety stock and proposed the establishment of"virtual inventory"to ease the pressure of enterprise funds with the practical method of operation.Moreover, found on the theory of hedging, this thesis set up a procurement strategy of hedging in response to the price fluctuations in raw material and put forward the practical approach.Finally, this thesis contained a set of strategic raw material purchasing strategies which are scientific, rational, stable, effective and fit for the scale of enterprise funds and raw material market price fluctuations. Then this set of strategies is applied to actual purchasing process in the enterprise and its effectiveness and lack are concluded.