Research On Performance Evaluation Of The Inventory Management In L Oilfield Supplies Department

In order to achieve effective inventory management, the scientific and rational inventorymanagement performance evaluation system is indispensable. L Oilfield Supplies Department isan L Oilfield Company affiliated to protect oil and gas production and construction materialsneeded. L Oilfield Supplies Department is warehousing, messaging, payment, distribution andother services as one of the production units, is the Northwest’s largest oil procurement andwarehousing businesses. In recent years, L Oilfield Supplies Department put forward higherrequirements for material inventory management, but lack of a suitable performance evaluationsystem of its inventory management, lack of inventory management performance evaluationsystem makes it impossible to identify problems and shortcomings inventory managementsystem in operation, not to propose new ways to improve the existing inventory managementmethods. Therefore, the lack of inventory management performance evaluation system led toinventory management methods behind, this is the reason for the regime. Therefore, according tothe current status of inventory management, the establishment of a suitable inventorymanagement evaluation system has become the focus of the work.Based on the review of the relevant literature at home and abroad, the paper examined theinventory management of L Oilfield Supplies Department by using a series of criteria, indicators,procedures and methods. Meanwhile the paper further measured the impact and performance ofinventory management, and made a comprehensive assessment of the current inventorymanagement. Finally, the paper put forward suggestions and advices to improve inventorymanagement. This paper made a thorough analysis of the inventory management situation of LOilfield Supplies Department inventories. According to the purpose of the implementation ofinventory management, this paper built inventory management performance evaluation systemwhich including the cost index, quality index and integration index. Cost index measured thecosts which incurred in the process of inventory management and operational processes,including the cost of funds used and warehouse utilization; Quality index (Quality indicators)was used to measure the current operation of inventory management, which consists of threeaspects, namely the response, safety and accuracy; Integration index (Integrated indicators)played a supporting role in the inventory management performance evaluation system, which helped measuring the cost of inventory, thus contributing to reduce inventory costs and maintaininventory management with high-quality, which including customer service levels and membersof the cooperative level.In this paper, a set of inventory management performance evaluation system is establishedwhich focused on L Oilfield Supplies Department. First, the paper evaluated the company’sinventory management level, then using the analytic hierarchy process and fuzzy comprehensiveevaluation method to build inventory management performance evaluation model, and a lot ofquantitative research are made. Finally, the paper offers some suggestions for L Oilfield SuppliesDepartment.