China National Aviation Fuel Shandong Branch Inventory Management Strategy Analysis

In order to adapt the development of international aviation oil market, optimize allocation of resources, enhance the utilization rate of fixed funds, avoid unnecessary risks, we must manage the aviation fuel storage cost. Meanwhile we must reduce the enterprise cost and improve the social and economic benefits to ensure the safety of aviation oil supply.This article introduces the basic situation and business process starting with oil inventories’ current management situation of CNAF Shandong Branch, and it also shows the importance of rational inventory management. In the process of oil depot’s construction, the investment scale should make according to the actual situation. Large scale makes idle and waste, while small scale affects work safety. This paper discusses the feasibility of aviation oil inventory management based on the market forecasting principle. The functions of inventory management in the business management and supply chain management are specified via analyzing the relationships among the inventory management, procurement, transportation, storage and sales. Based on the analysis of the factors that affecting the aviation oil inventory management, and analysis of the inventory model optimization theories, the paper gives the mathematical models of theoretical cardinal number of reasonable inventory, minimal cardinal number of reasonable inventory, order point control, order volume control per month, and effective inventory. The aim is to accomplish the effective management of aviation oil inventory by the risk control of different operational aspects of aviation oil companies.