Long Lead Time Material Purchasing Strategy For Hennecke Company

Hennecke is a Germany manufacturer which can supply the PU machinery. Its business is almost project business. She use JIT mode in production currently. But, some key materials are imported from Europe, and the delivery very long, it takes3months and even not stable and these long lead time materials often delay. The delay always disrupt the production plan, cause the assembly has to stop and waiting for material, and workers no more work to do, seriously it can cause delivery delays directly, in addition Hennecke has to bear the high penalty for delayed delivery, it also affect Hennecke’s reputation in market and competitive capacity.On the base of analysis the purchasing strategy of long lead time materials for Henecke company. And the analysis the main factors of goods delay and order flow not smoothly, summed up the defects of supply chain management for Hennecke company. Afterwards, propose using EOQ purchasing model to purchase long lead time materials, also analysis the purchasing strategy when it under different customer service lever. Finally, analysis the purchasing strategy by using EOQ and JIT model when the customer service level and influencing factors changed, and propose the suitable decision. The research is very important significance not only for improving delivery status of purchasing management and solving order flow management for Henecke company, but also use for reference significance for other related company.