Study On Inventory Management Of Substrate Prepare Production In Company I

Inventory is a general term of raw materials, products, semi-finished goods and finished goods in the production. It exists in all aspects of production, inventory not only affects the consistency of production but also directly related to the ability of the enterprise to fulfill customer’s demands. The primary objective of inventory management is to reduce the manufacturing and service cost, improve the production efficiency and service level, and enhance the competiveness of the enterprises. Inventory management is an important aspect of the enterprise operation and management capabilities. With the advent and development of the supply chain inventory management and the lean manufacturing theory, the connotation of inventory management is becoming more abundant, and this provides more solid theoretical foundation that enables more resolutions towards inventory management issue.Company I is a wholly owned subsidiary of the world’s leading semiconductor manufacturer: YTE Corporation, I company’s major business is integrated circuits assembly and test. With the market conditions changing in recent years, YTE Corporation started the strategic adjustments, YTE Corporation raised the manufacturing cost as the most important indicator while pursuing the products excellence on performance and quality. Therefore company I is facing increasing pressure of cost as the YTE Corporation’s manufacturing powerhouse. The inventory management problems in the substrate prepare production of the company have become more acute, and have greater impact on the implementation of the manufacturing cost reduction strategy within the expected period. Analyze those inventory issues of the substrate prepare production and work out the resolutions would favor the implementation of manufacturing cost reduction strategy, and be in line with the company’s strategy requirements.This thesis firstly explains the research status and development direction of inventory management. After that, the thesis analyzes the inventory management problems in the company’s substrate prepare production and identifies the root cause of those problems. Combined with the real situation of the company, the thesis has proposed the resolutions by improving the production process, improving the substrate ordering patterns and the enhancement of the storage management etc. to resolve the inventory management issues in substrate prepare production. Finally, the implementation and subsequent follow-up of those resolutions are analyzed and proposed countermeasures for possible problems at this stage.This thesis is about raw material inventory management on production line of semiconductor manufacturer. Research methods and resolutions herein have certain reference value that can be applied in similar enterprise as well.