Inventory Control For Optical Communication Device Supplier

As the extent of increasing global economic integration, supply chain management has become an indispensable part of modern enterprise management; and inventory management is an important part of supply chain management, particularly in the supply chain management of manufacturing enterprise, The quality of inventory management will directly affect the cost of the company and even determine its rise and fall.On the base of Company A, an optical communication device manufacturer, the paper analyzes the status of industrial inventory management. Due to the industrial features of less quantity, various models, high technology, there is no existing inventory management model that can be applied. A set of inventory management optimization approach is done by flexibly using a variety of management practices and continuous improving multiple inventory management indicators, depending on actual situation.With the above background, based on detail data from Case1, Case2, the paper illustrates the problems of higher stock and lower inventory turnover ratio in Company A Wuxi branch. Taking2examples, i.e., representative products "40G transceiver modules" and "Wavelength Selected Switch", the paper analyzes the data of the average inventory, inventory turnover, turnover days, explores each kind of problems during the inventory management process; through the implementation of VMI, adjustment of safety stock level, development of standard materials, creation of key performance indicators for buyers and other various ways to achieve the effect of enhancing inventory turns and reducing inventory management costs. The main research contents and results are as follows:The materials were comprehensively classified and managed through the ABC and Kraljic matrix method; Unreasonable purchase quantity was found while Lead time was optimized based on material consumption simulation profile which standard deviation analysis was used.Judged the forecast and made better procurement strategy via the analysis of the coefficient of variation. To reduce the procurement lead time by different order model and forecast offering etc. To improve the VMI implementation ratio through change key performance index of sourcing team and commitment supplier more opportunities for cooperation; Actively enhance the awareness and morale of purchasing department management inventory via setting an effective key performance index for buyers.It has good achievement with such a set of inventory management about the method of optimization of inventory management during the implementation process of Company A Wuxi branch, which indicated it is an effective way to implement in optical communication devices industry, to provide a reference for similar companies.