Inventory Management Of China Plant Of B Corporation

From2005, Chinese HAVC industry has entered into a relatively stable period and the market competition has become more and more clear from then on. Even though B Corporation occupies excellent market shares and has been quite famous in HAVC industry in China. Presently, B Corporation desires to expand its Household/Light Commercial product businesses and relevant market shares, however, seems that it has missed the best opportunity. Both overseas and domestic HAVC manufactures almost become the key competitors against B Corporation.Currently, the main problems B Corporation meets with now are:On one hand, overstock of long-age inventory and lower inventory turnover lead to the unobstructed of unsmoothness of enterprises funds turnover; On the other hand, with the decrease of the sales revenue of Light Commercial products within recent years, the continuous shrinkage of purchasing amount leads to the price increase of raw materials, poor on-time delivery and the after-sales service, which will bring high risks for overall supply chain normal operation. All mentioned above will directly results in worser on time delivery, impacting on customer satisfactory.This artical firstly gives a brief introduction regarding the background of B Corporation and its parent company.Then, it outlines the basic theory of several advanced Inventory Management Methods、Current Inventory Feature、Inventory Turnover Status, together with defects of the application of MRP II. Meanwhile, the article also points out ABC Materials Classification Method、Optimization of Lond lead time of raw materials、Enhancement of Physical Inventory and Adjustment of inventory in MRP system to decrease inventory, speeding up the circulation of enterprises funds, and enhancing customer’s satisfactory so as to improve comprehensive competitive power.