Research On Inventory Management Of Huashida Store Wal-mart China

Stock of enterprises is for the sale of the finished product and the forthcoming reserve raw materials; Inventory is kind of the stagnation and storage of any items with economic value, as well as the part of current assets of financial statements of the enterprise in a certain period.Inventory is also one of the most expensive assets of many companies, which typically accounts for40%of the amount of the annual use of funds. The task of inventory management is that under circumstances of protecting the company normal operating, to find the best balance among the goals of minimizing the total cost, customer service optimization and minimization of the total inventory, the shortest total cycle time and optimization of logistics quality. Among them, the total cost minimization and the minimization of the total inventory levels are directly related to the level of inventory management.This paper is based on the inventory management situation and existing problems of Huashida store Wal-Mart China, as well as the background and the object of study. The inventory theory of ABC and JIT both are adopted in this paper.Wal-Mart’s inventory management system mainly includes logistics system; replenishment systems and special replenishment system. And the various systems are all linked closely each other. Wal-Mart’s data flow are interdependent, sharing inventory management data.Although Wal-Mart has the world’s most powerful and complete inventory management system, there are still many problems and defects while operating in China. The main problems of Huashida store present some:the amount of inventory is too high, slow turnover of goods, too many out of stock items,category varieties not suitable for consumer groups, systems and artificial replenishment are inaccurate, the management of backroom,riser and shelf improper. It is expected to take a careful analysis and discussion, and to study the correlation between the various factors to find the effective optimization program when facing with these problems. These optimization programs include:Firstly, optimization program of reducing inventory and inventory turnover days; secondly, optimization program of controlling out of stock and category and items; thirdly, Optimization program of system order and artificial order; finally, optimization program of the management of backroom, riser and shelves.The implementation of these optimization program, mainly depends on the methods of definitions and classifications, based on the length of storage time and the turnover rate of the goods.Handle with the slow-moving items which inventory days up to180days and360days. Concerned about a week and five weeks of no move goods. Monitor by various report, so that to make the whole inventory management processes onto the right track of beneficial and sustainable development.In addition,Evaluated and gave feedback about the optimization program. For reference and learning from for the same sectors.Finally, summarized the whole paper.