Order Fulfillment Mode Of Stock Plan Design

This thesis discusses and studies the design of enterprise inventory planning. Start from production model, analysis the one-piece customization, mass production and mass customization features as well as their influence on order fulfillment, and that focuses on the analysis of mass customization of the Toyota production system and the Dell direct model. The development of production model determines the changes of order fulfillment model, mass production determines build to stock and mass customization determines build to order, and also assemble to order, design to order, configure to order and etc. The essentially difference between order fulfillment model is the ratio of production lead time and demand lead time. Although the production lead time can be reduced by postponement strategies, but it most businesses, production lead time is basically depends on products, technology, production capacity, efficiency of process and so on. And the demand lead time is closely related with the products markets. Based on this, the thesis gives design step of order fulfillment model.Order fulfillment model makes a great impact on inventory level, inventory is more lower in build to order model than build to stock, but we still can do some inventory optimization according to the causes of inventory, for example:Dell direct model can overcome pipeline inventory, newsboy model can help making the seasonal inventory, economic order quantity can reduce cycle inventory, order-up-to level inventory policy can bring safety inventory to a minimum, the Toyota production system can suppress the buffer inventory. This thesis points out inventory planning design methods under different order fulfillment models.Finally, take KT Company as a case, do a deeply research according to the design steps of order fulfillment model and inventory planning. Pointed out that the KT Company can implement build to order model if take a series of measures, and gives the detailed production planning solutions. After implemented build to order strategies, the thesis suggests using order-up-to level inventory policy to design raw materials planning to improve the ratio of inventory turnover. For trading parts in KT Company, the thesis suggests through ABCXYZ analysis to divide products by purchase to order and purchase to forecast, and learn from Dell’s successful practices to improve forecast accuracy.