Raw Materials Inventory Management Of S Company Based On Lean Production

Lean production thinks the inventory is the biggest waste. Because inventory could increase the operation costs and cover up the problems. Their ultimate goal is keeping to pursuit of minimizing inventory. In the implementation of lean production manufacturing enterprise, how to use the advanced management tools to well manage companies inventory? This paper will discuss this problem.This paper first introduces the lean production, inventory management theory and inventory management methods under Supply Chain Environment. Then take the company S as the case to study its inventory management problems. After that this paper will discuss the problem and analysis its root cause. Compared with the actual situation of S company and kanban running conditions, we find the products of S company are diversified, and most of the products demand is not stable.And the raw materials feeding way is too single. In view of inventory management problems of S company, this paper offers several improvements ideas, such as change of organizational structure, clear division of responsibilities for related inventory management functional departments, combination of JIT and MRP-II feeding methods and so on. For the raw materials which are in accordance with kanban running, this paper formulates strict detail operation rules and principles. Concerning the key suppliers, we combine with the supply chain inventory management methods such as VMI. Some methods have got well results in practice after the improvement. It is not only the proof of the theory but also a certain practical guiding. And also could provide a certain reference for the companies which have the same kind of problems.