The Research Of The Jointly Managed Inventory Model For A Company

In the fierce market competition environment, inventory management has been more andmore important in various companies during daily operation and management. Inventory coststake great proportion of companies’ costs. When the inventory grows too much, the more fluidcapital is occupied, which increases business costs and risks, especially when funds are tight,business running and improvement would be seriously affected. When the inventory fall short,even run out of stock, the quality of business service would be badly influenced. Inventorymanagement has become a prerequisite for the smooth conduct of production and businessoperations, so the research of inventory management has important practicalsignificance.Traditional inventory management focuses on a single inventory costoptimization, starting from the storage costs and ordering costs to determine the economicorder quantity and reorder point. The applicability of the method should not be ignored, but itleads to a demand amplification phenomenon when the companies focus on their owninventory instead of the whole inventory, and the overall optimization can hardly be achieved.Therefore, this paper starts from the perspective of the overall supply chain optimization,setting up supply chain inventory management system from the internal to the enterprisegroup, so as to increase the level of service, and adapt to the competitive market environment.This paper firstly reviews the research background, significance and the study at homeand abroad. On the basis of the research, the paper analyzes the current inventorymanagement situation of the A company in terms of inventory turnover, inventory to totalassets ration and prompt delivery ration. And then, the paper analysis of the deeper reason ofthe inventory management defects. The paper elaborate the advantages and the defects of theVendor Managed Inventory, Jointly Managed Inventory and CollaborativePlanning,Forecasting and Replenishment. Combined with the actual situation of the Acompany, the paper build a new JMI model on the theoretical basis of the Jointly ManagedInventory and carry out it in the A company. Finally, this paper evaluates and analysis theeffect of the implementation.This paper uses a literature survey, theoretical and empirical combined analysis,qualitative and quantitative combined method, experimental analysis, comparative studymethod and other methods. Company A takes advantage of JMI model in inventorymanagement, heightening inventory forecast accuracy, and effectively eliminating theamplification phenomenon in the traditional supply chain management, coordinating thesupply chain between each node of the enterprise inventory so that business rights and responsibilities, risks in operation are shared. As the problems of Company A are universal,the research results will apply for other types of small and medium-sized household electricalappliance enterprises, and will supply reference value to improve their inventorymanagement.