Research On Improvement Of Inventroy Management Of EW Company

With the economic globalization of trade and the increasing competition in themarket, more and more companies come to realize that it is not enough to rely on itscore products to occupy the market. Therefore, how to use the most economicalresources to meet the customer demand in great extent has become the focus of thecompanies. As the supply chain concept is come to use, many domestic and foreignresearch scholars and managers of the companies are keen on to study of how toreduce supply chain costs. So inventory optimization and improvement has becomethe most useful method to reduce the cost of the whole supply chain.This thesis is focused on a manufacturing enterprise which inventory involvingof raw material, work in progress and semi-finished products. There are manyvarieties of materials and its inventory is on a high level. From the analysis of thecurrent situation of the EW company, this thesis presents some main problems of theinventory management in this company, such as demand forecast is not accurate,stock material are not managed through ABC classification, delivery day is too long,for the safety stock, lot size of production and purchase are lack of quantitativestatistical analysis and so on.In order to solved the above-mentioned problems and improve the mananementof the inventory. This thesis use demand forecasting methods, inventory management,production planning and other basic theories, qualitative analysis and quantitativeanalysis methods, from the perspective of logistics engineering research anddemonstration. In order to improve the accuracy of demand forecasting, reduce supplychain bullwhip effect, this thesis is using weighted moving average, exponentialsmoothing methods in demand forecasting, using mean absolute error to analyse thedeviation of the forecasting. Through the implementation of ABC&CVAclassification, pay more attention onto the important materials of the raw material andsemi-finished products. Using the statistical analysis to determine the safety stock,reorder point and order quantity. Use production scheduling methods, such us Ganttchart, SMED and other reasonable methods to reduce the inventory of WIP.Through the integration of the above methods, EW company effectively controlits raw material, work in progress and semi-finished inventory in a resonalbe level,inventory costs is reduced, inventory turnover is rapid than before and it can morequickly respond to the customer requirements.