Study On The Multi-echelon Inventory Management Mode Of Automotive Service Parts

With the quantity of cars increases year by year in China, while vehicle sales declining profits again, the automotive aftermarket gradually replaced by vehicle sales, has become the largest source of profits in the automotive industry, therefore, automotive after-market services is gradually concerned by automobile companies. The management of automotive service parts in the automotive after-market accounted for a large proportion, so if you want to have a place in the automotive after-market, you must do well for the management of auto service parts, and the key of its management is done well the spare parts inventory’s management, reduce the inventory number, type and costs, this the new way for car companies to find profits.From the perspective of the supply chain, in this paper, analyze the problems and causes of current auto service parts management. According to its characteristics, select a suitable mode of automobile parts inventory management. However, how to solve the problem of spare parts inventory costs, management mode and other issues, I think that can be addressed from three aspects. The first is the management model: to proposed a centralized control management, by leveraging information management system to strengthen communication and cooperation among the various inventory and form an efficient supply chain about multi-Echelon inventory. In addition, it’s necessary to set up a virtual focal point of spare parts to facilitate the management of upstream and downstream, and better able to take control of the spare parts inventory. The second is the spare-parts classification: first analyze the characteristics of the ABC classification, and point out the defects of classification in the classification of the vehicle spare parts management. Under given conditions, based on ABC classification to form the VED classification for spare parts. The ABC-VED classification method consider the value and criticality of spare parts and are properly classified through a combination of the two-class classification of spare parts. And to develop a re-classification of spare parts after the classification matrix, explains each type of service parts inventory policy. Then the inventory models: this inventory model mainly bases on the minimum cost, that is, without altering the original service level, optimizing spare parts inventory so that making the minimum costs of total expected inventory. To solve the model, at all levels of the warehouse order point, the total reorder point, safety stock is relatively easy to solve. Due to the amount and allocation of the amount of orders is difficult to solve by general reasoning, achieved by genetic algorithm programming. At last, use the FAW-Volkswagen Automotive Company as a case to analysis and use actual data as an example, to test the effectiveness of inventory model.This paper bases on the original model to consider the damage costs of spare parts, which reduced spare parts inventory costs and improve the company’s brand image. Meanwhile, the order costs and the allocation of costs is discussed separately, through the comparison of these two types of cost, select the corresponding order, making the total inventory cost minimization. Finally, use the FAW-Volkswagen Automotive Company as a case to analysis, and put the sample data into the new model to verify the validity of the model.