Study On Optimal Management Of Spare Parts In LS 4S Stores

The core of the franchising operation system of 4S stores is "quaternary", composed with 4 parts:sale of vehicle, the spare part, the after-sale service, and the feedback. China hasn’t 4S stores since 1998 and it was intorduced from Europe which have lots of advantages like good environment, strong brand awareness and high-quality service because of the close link they build with factories and the system of brand exclusivity. And that makes 4S stores become more and more popular among China.The inventory of spare parts is the key point and difficulty that 4S stores face to in daily operation and management. To reduce the costing and enlarge the income, much reasonable procurement, transportation and inventory on spare parts should be attain. This essay will analysis the inventory and features of thespare parts in 4S stores and focus on the target of inventory management and the history of the inventory system’s development. Finally, the summary on the inventory backlog and the interpretation of the basic idea and operation of united inventory will be done.Combined with the fact of LS 4S store’s management of after-sale spare part inventory,2 solution has been found:multi-principal ABC classification and crosswise replenishment. This essay will test on 4S stores and put the strategy of crosswise replenishment into effect then detect the results. To get the optimal arithmetic of crosswise replenishment, a crosswise replenishment model composed by a spare parts DC and several same 4S stores will be built.