Research And Application Of Inventory Management Of Relevant Demand Under Lean Perspective

With expedited progress of economy globalization, the competition that companies are facing becomes more and more furious; while fast response of the market leads that companies could not maintain their simple and partial advantages in a long period. In order to establish continual competition advantages which are difficult to be imitated and copied, and to survive in such growing competition envirement, companies need orient at satisfying customer demand and providing value added contents to customers. Through long-term efforts, continuous improvement and innovation, and being dedicated in reducing various wastes existing in the processes, it will constantly escalate internal capability of adding value. Dependent demand inventory rooting from independent demand, as one of the lean wastes, is recognized by more and more companies. The companies do not cheat dependent demand inventory as symbol of fortune any more, but strengthen the management with necessary resource investment. The management of dependent demand inventory is one of main type of operation strategy of production companies and directly or indirectly affects other company activities, especial operation, sales, accounting and finance. If keeping lower dependent demand inventory, it will not leverage demand and supply and cause unnecessary production waiting; it will not shorten the distance between supplier and customer, and will lead that customer spends long time in waiting for the good delivery and even customer turns to other competitors. However, if having higher dependent demand inventory, it will occupy high amount of funds and reduce the cash flow which may be used into other investment. The role of dependent demand inventory in operation is very important, and effective and scientific management may reduce the total cost of operation and enhance continual competition advantages of operation.Any dependent demand inventory is not adding value for operation processes, and is also the portion that customer does not want to pay. However, companies also try to conceal operation problems via storing lots of dependent demand inventory, which seems that operation is very smooth from the teeth outwards. The previous management method of dependent demand inventory has never been suitable for modern company management requirements and been able to resolve the existing problems of dependent demand inventory management. Depending on the profound understanding and embedded study of Lean, establishes "Lean House" Model, and Lean is also first time to be introduced into dependent demand inventory management. Through Lean culture education and Lean tools’application, the waste of dependent demand inventory is reduced step by step; the problem explored from operation processes is timely resolved, and then realizing continuous improvement and advancing company’s overall operation capability. Taking BDMP as research sample, with the basis of Lean and inventory management related theories, attempts to apply lean into dependent demand inventory management, provides a series of lean tools to the company, for example, Kanban, value stream, lean inventory20keys etc. and helps the company carefully look into operation processes and improve the integrated process capability. Linking the company’s current conditions and future development strategies, seeks for the opportunity of dependent demand inventory reduction, timely settles the emerged problems due to inventory reduction, and establishes favorable foundation of continuous improvement and lean culture.The paper introduces inventory conception and classification, inventory management related theories, and lean theory of dependent demand inventory management; analyses the actual conditions of BDMP’s dependent demand inventory in various operation processes; adopts Kotter’s8steps of leading change to achieve the promotion of lean culture and lean application in dependent demand inventory management; designs metric systems, sets up SMART goal, and measures the effectiveness of lean improvement.The success of lean practice in BDMP’s dependent demand inventory management and the research fruit of this paper are also applicable for other similar companies in medical industry.