Study On Inventory Management Of Raw Material In

With the rapid development of market economy of our country, lots of advanced science and technology has been introduced to reduce operating costs. The scale of materials costs in the whole operation was high in enterprise. In past economic development stage,more inventory always means more advanced the enterprise is. But it does not mean higher profit. Inventory can ensure production run smoothly, such as material inventory. O n the other hand, inventory can meet the demand of market. So it is very important to optimize the inventory. Through this way enterprise can control the production and utilization of funds.Under the pessimistic economic environment, the tobacco industry faced the pressure from the limit of traditional system in which enterprise cannot completely adopt the competition mode of production. Thus it is hard to enhance corporate profits. Furthermore, slow development of distribution system also increased enterprise’s logistics cost. From the traditional inventory management, we study H cigarette factories which belongs to Yunnan province as example. In this paper, we study the status of the raw material inventory and solved the problems, including the principle of using materials, the mode of predicting the quantity of material, economic order quantity of inventory by SPSS,R. At last, we established a plan for factory to use material. Then the models of predicting and economic order quantity were funded. Through this way, the quantity predicted is more suitable for reality and the cost of inventory was lower than before.In this paper, we tried to find a plan suitable for cigarette factory to solve the problems in inventory. We reduced the cost and raise revenues of factory based on the research of the H cigarette factories’ raw materials inventory management.