Study On "Zero Inventory" Management Model And Its Application

China has seen a rapid and steady economic growth over recent years while accompanied by ever increasing inflation, which has directed the market players trying to source out suitable and possible ways to save costs. Some have achieved "zero inventory"while some still exploring and approaching. High-tech IT network technology has been broadly applied in new Market economy, enterprises tend to reform their traditional production operation by reducing inventories of raw materials and end products; quicken cash flow turnover and increase capital efficiency in order to keep up the pace, with the support of maturing E-commerce.China export-oriented economic was deeply hit by financial crisis in 2008, whereby inventory problems were exposed among small and medium sized companies. Thus "Zero inventory" has become a significant factor in finance management, as it tackles inventory dilemma troubling market players for years.This article is presented in two parts:Introduction and main body.Chapter one Introduction brings the research background and value of this thesis. Both foreign and domestic zero inventory management model are reviewed, with innovation and shortcomings of this article being highlighted. Main body consists of three parts, Chapter two, three and four. Chapter two introduces theories related to inventory management models and Chapter three shed light on developments and applications of "zero inventory" management model, with elaborations supported by classic Dell case and its extended application in medical field. The last chapter raises practical issues in daily application of "zero inventory"as well as offer suggestions and directions for further developments its adoption especially domestic adoption.