LCR Electronic Inventory Optimization Management

Y2008, American Financial Crisis sweeping the global, unstable market demand, Urgent schedule for customer delivery, long lead time for material purchasing, high employee turnover rate, low design and technology capability, all these become more and more serious and result to the profit space more and more limited. So the company inventory which occupied the large amount of the capital will be inevitably become the primary breakthrough point for the LCR company cost reduction and profit increasing.Inventory, as the essential resource for LCR which ensure and guarantee the smooth and successful implementation of business activities, but also make the company take the risk of the liabilities. Unreasonable inventory holding, not only occupy a large storage space, waste a lot of manpower control cost, but also take up the LCR company large amounts of liquidity. LCR company, due to its vulgar and experienced inventory management style, has many stock problem of allowing moving and pending, especially for the raw material, related inventory level is far beyond company target for consecutive two years, which has become the major bottle neck for LCR company to reduce costs and enhance the company’s level of service.The paper is starting from the basic theory and methods of inventory management, combined with the characteristics of LCR, make the detailed review for problems summary and root causes analysis related to current raw material inventory management, then presents a series of practical measures and recommendations for correction and improvement.By this paper, on the one hand, for the LCR to find a practical raw materials inventory management programs to help the LCR to reduce inventory costs, and achieve the purpose of cost control; on the another hand, for a similar or other types of small and medium-sized manufacturing companies, hope to provide a reference to change the backward raw material inventory management in essence.