Application Of Inventory Management In Small And Medium Sized Leisure Food Enterprises Based On Lean Six Sigma

The development of modern economy and the competition of the world have forced theSmall and Medium Sized Leisure Food Enterprises to reform since China have joined theWTO. There’s no doubt that decrease the cost of the leisure food enterprises is one of the mosteffective way to enhance the management.The huge inventory number and the diversity spices of products establish the importanceof inventory control in food industry. The traditional inventory management has brought manyproblems with the fierce completion in the food industry in recent years. On the one hand, theinventory has occupied a great number of cash of the enterprises. On the other hand, customerservice levels continue to decline due to the lack of products. Therefore, Small and MediumSized Leisure Food Enterprises need a set of standardized and effective management in theirinventory control. For example, reduce their cost, improve the competitiveness and so on.The passage is aimed at the general issues in the inventory management of Small andMedium Sized Leisure Food Enterprises. Solutions and suggestions are provided with thetheory and tool of Lean Six Sigma which has been paid a lot attention in recent years.Firstly, the passage introduces the theory, methods and tools of Lean Production and SixSigma. It argues the feasibility and necessity of the combination of Lean Production and SixSigma. The passage also introduces the definition of inventory control and the classification ofthe inventory control model.Secondly, the passage analyses the feasibility and necessity of the combination of LeanSix Sigma and inventory control. It also puts forward some suggestions during the application process.Thirdly, the passage defines the connotation of Small and Medium Sized Leisure FoodEnterprises and points out the threats and challenges in the process of its development. Itestablishes the structure of inventory control based-on Lean Six Sigma. Above all, forecastingthe demand of customers and calculating the economic production quantity so that we can geta preliminary improvement plan. Then measurement, analysis, improvement and control areneeded to define the critical indicators with the process of DMAIC.Finally, the inventory control based on Lean Six Sigma will be applied to H company toimprove the inventory management currently. It will evaluate and predict the effect of theimplementation.The conclusion of the passage is that the application of Lean Six Sigma in small andmedium leisure food enterprises of inventory management is efficiently.