Material Inventory Management Optimization Of X Company

With the development of economic globalization, the popularization and application of the concept of inventory control, the company’s managers began to realize that enterprises not only rely on the improvement of production technology to improve the economic benefit but also need to control the company’s operating costs. Since the inventory cost is an important part of the company’s operating costs, the company can enhance the control of inventory to control operating cost. Scientific and rational stock can improve the operating efficiency and the company’s competition ability in the market.Based on the X company as the research object, which is a company produce low-voltage electrical product. Based on the basic knowledge of inventory control theory, we analysia the demand characteristics of the company’s products, the conditions of materials and suppliers through to X company’s production mode and sales channels.we found that the company have a wide variety of materials, but the classification method is too simple and the lack of control of critical materials; procurement cycle and bulk materials design is not reasonable. Material inventory management problems caused by the inventory is not reasonable and the high cost of inventory is more serious.In view of the existing material inventory management problems of X company, we optimizes the stock management from two aspects of material classification and inventory control model. According to the characteristics of the company’s material,we select inventory amount, the supplier’s service level, material versatility and material models of the four indexes, after that we use the fuzzy clustering analysis method on the sample material for clustering analysis of the material. And then samples of materials for recycling have been classified by Kraljic matrix classified according to their importance and the material supply risks two indicators. Then based on the level of supply risk materials to determine a reasonable inventory control models. Materials for high supply risk using stochastic inventory model with safety stock. For this kind of material is determined safety stock and reorder point by the model. Finally, we evaluate the effect after use the optimization model. Materials for low supply risk implementation of static optimization and dynamic optimization by the Deterministic Inventory Control Model and Dynamic Model of Multi-material. Finally, we evaluate the effect after use the optimization model.This paper research the inventory management problems through investigate and analysis the inventory management of X company. Through qualitative and quantitative analysis methods, we take some effective measures to cope with the inventory problems,with a expectation that it will play a positive role in the production development of the company.