Inventory Management Optimization Study For HUA Communication Company

The development of the communications industry has entered into a stable period. In2012, the communications industry carrier investment scale without previous large-scale sustained growth momentum. The total amount of investment of the operation business this year keep basic flat with last year. Communications industry competition is intense, and profit is in abnormal low condition. At the end of September2012, ZTE communications issued financial report:low margin by such negative factors, ZTE lost1.7billion yuan in the first three quarters, and drop259.14%compared with the same period. The telecommunications industry has not previously at all costs to pursue the pattern size but ignore profits era. Supply chain management is one of the most effective measures for cost control, and the inventory management is the priority among priorities of supply chain management.The inventory management of HUA communication company currently faces a lot of problems:in regional inventory part, such as too much product code, low standardization, a large number of equipment to overstock or out of stock, low operation efficiency even unable to quickly send stockpile problems; in pressure inventory part, there are two components, large office stock caused by customer refusing and idle stock in the customer warehouse. The massive huge number is the key problem of this part of inventory, which caused the idle resources can’t be used for the demand of carrier constructing the network. This article eventually proposed the optimization scheme respectively for regional inventory and overstocks combined with the actual business through the inventory management theory and the study of application and applicability of inventory management under the supply chain environment. The optimization effectively improved the HUA company’s inventory problems: to reduce inventory amount, improve the rate of inventory turnover, improve operational efficiency, reduce the real risk, increase competitiveness, and satisfy both business and customer to achieve a win-win situation. Therefore, the article did the useful exploration and tries to improve the HUA communication company’s inventory management level, also provides a model and reference for the communications industry and similar production industry supply chain inventory management optimization.