Inventory Optimization Of Specialty Chemicals In Chemical Industry

With the continuous development of the economy and market competition becoming moreand more intense, the competition between the enterprises switches to the competition betweenthe supply chains. Meanwhile, as the inventory management is a top priority in the supply chainmanagement, it becomes more and more important in enterprises. Good inventory managementcan reduce the inventory and accelerate cash flow, which is an important way to bring efficiencyand increase profits for the enterprises.Base on the analysis of the current status of the specialty chemicals in a foreign enterprise,many problems such as low predictive accuracy, the serious bullwhip effect, simple inventorymanagement, lack of systematic inventory control strategy, large effect by the regulations ofchemical products management were found. These problems lead to the low efficiency ininventory management, high inventory costs, and many other difficulties. To solve theseproblems, formulate the six major solutions: the first, using the ABC-XYZ classification topredict and manage inventory so as to improve inventory management efficiency. Second, usingscientific prediction theory and the optimized system of supply chain planning, through thecollaborative cooperation between different departments to improve sales forecasting accuracy.Third, by increasing order frequency, using the inventory control strategy to determine theoptimal replenishment timing and quantity. Fourth, by optimizing safety stock settings andinaction stock management, to further reducing inventory levels and the risk of the inventoryscrap. Fifth, by optimizing order management and the organizational structure, strengtheningcustomer management, developing good relationship with customers in order to achieve supplychain collaboration and efficient supply chain management. Finally, establish a long-terminventory control management mechanism through the performance indicators setting.The results show that after the implementation of the optimization process, the inventorywas successfully under control and optimized.