The Supply Chain Optimization Of China Traditional Handtool Trading Company

Since2005of "Yuan Appreciation", China’s traditional handtools tradingcompanies are losing their competitiveness in the world trading competitions;the profit level of the whole industry is getting worse. Till Oct.2012, RMBhas been increased over30%against USD. Meanwhile, with the cost increaseof labor, transportation and raw material, the whole handtools tradingindustry is moving hard.It is clear that the outside environment is unable to change or reverse, sothis article is trying to make a deep survey of MI’s current internal supplychain, and looking for an optimized supply chain plan to increase thecompetitiveness and profit level of MI.With referring to the related theory of supply chain management, thisarticle helps MI to optimize its supply chain through better supplier selectionto increase MI’s product value, decrease the transportation cost by betterwarehouse location selection, maximum the inventory efficiency byforecasting the demand accurately, and also open a new view of VMI for MI’s future development direction.Under the analyzing of optimized MI’s supply chain, it will be sure to helpMI to increase its competitiveness, the methods used in this article includevendor selection (Analytic Hierarchy Process), warehouse locationselection, demand forecast, safety inventory control, etc.This article may help MI company’s future development, and it will alsoshow the value to other similar industries.