C Company Material Inventory Control Optimizing

Inventory asset is playing a more and more important role in proportion in all aspects ofoperations of business. On the one hand, it will occupy much funds if there is lots ofinventory assets, otherwise, the operation of business, like producing and selling, will beimpacted if the account of inventory is quite much less. So it will increase the number ofpurchases for an organization or production batch as well as the cost of producing and selling.It is very important for a company to improve the management level of inventory anddecrease retains cost in the mean while assuring the satisfaction of customers.Manufactory world can be a very cutthroat business in the economic crisis today,especially; it raises their demand for higher quality to those OEM factories. The managementand controlling of inventory appears more and more vital.C company is a small-range household electrical appliances manufactory. Currently, theprevious inventory management model had become a showstopper during the operation of CCompany, especially in the hard period of appliance manufactory. In2010the number offunds spending on raw materials is up to one third to its sale, but net worth utilization is lessthan6%, which is much less than leadership company of15%to24%. Obviously, fundsoccupied by inventory are great higher.In this thesis, we analyze all kinds of aspects, for example, order mode of raw materials,date of delivery, forecast of sale, prediction of requirement, and arrangement of producingbased on current status. We will continue analyzing safe level of inventory of raw material,economic batch purchasing of materials by using ABC inventory controlling method, EOQtheory of economic batch purchasing and JIT on-time producing way. Furthermore, we willpropose an optimizing solution of inventory management. By changing inventorymanagement model in order to shorten the period of goods delivery; changing sale forecastingmethod in order to keep much closer to real requirement and reduce the impact of theuncertainty of requirement to OBS.The research in the thesis tries to find a set of performable solution to reduce inventorycost, improve the capital utilization.