A Study Of Improvement Of Parts’ Supply Chain Inventory Management Of KD Company

With China joined WTO and globalization process speed up, many western valve company benefits abundant part supply resource source to establish manufacture base in China. Located in Tax Free Process Zone, KD company is an example. Part supply chain is of quite important chain of it’s operation, which effect customer delivery performance and clients reservation. As fierce market competition and variety product series and sizes, part inventory becomes bottle neck. Mal-management occurs to cause high stock, unstable and mismatch of part stock neck, unpunctual performance needs to be improved. In this article KD company was taken as study object, to observe state of supply chain, to analyze the reason of existed problem. And improvement measures were proposed.This paper is composed with5chapters, firstly it expatiates background this subject and the intention of the study; secondly it present related supply chain theory, inventory ABC classification theory and Theory of Constrains. Thirdly it introduces the article company, it’s product and parts category, describes state of inventory and stock management, main supplier and part supply state, analyze the cause of the phenomenon in respect to part classification, sales forecast and supply chain coordination. Lastly, measures are tendered for improvement, manage part in strategy of certain classification, to improve forecast system operation, and to apply joint managed inventory JMI. By these measures total part inventory and composition will optimized, and sales performance will be lifted. Finally based on the measure applied, new performance of inventory system was evaluated to see inventory target criteria to be approached.This paper study can provide effective solution to improve KD company’s supply chain’s inventory management and daily transaction, as well as for reference to other valve manufacturer.