Research On Inventory Controlling Of Finish Products

The Wave of globalization is weeping through China, and the competition turn to more and more aggravated in the world market. Chemical industry is the important sector in the national economy. Nowdays, how to break through the bottleneck and the close siege become more and more important, and we are paying more attention to sustainable developement. SFC company is one of the basic chemical industry. It’s worked on cost controlling under cutting costs and intense competitive pressures. In order to dig the potential of the company, and optimize the allocation of resources. At the same time, SFC company made the feasibility analysis and evaluated it from the point of their own view. SFC company start to implement VMI model in Jan.2012.It means SFC Company could analyze the management of stock, and make an in-depth study of the deterministic inventory model of finished productFirst of all, based on the view of supply chain management, we are analyzing SFC Company’s present situation of inventory control by three aspects in latest four years. There are inventory structure, inventory cost composition and the sluggish stock, and we find the problem according to it. After that, we are focus on VMI model which implement recently, and we found the controls has been performed by a VMI model for raw materials very fruitful. We launch a research on methods of controlling the inventory of finished products based on VMI model, and establish two deterministic inventory models of finished products in VMI. which are model of not allowing goods shortage and model of allowing goods shortage. We figure the optimal inventory quantity and suitable shortage quantity by researching two models in SFC Company. Then, SFC company verify the model after the model established already, and compare the results of traditional method of finished products’inventory control and VMI mode of finished products*inventory control. The results show that two deterministic inventory model of finished products in VMI were very helpful in reducing operating costs.sloving the problem of finished inventory management and optimization of the final product inventory structure. Finally, we make an evaluation of inventory controlling of finished products based on VMI model objectively, and provide some usful suggestion in this paper.