The Inventory Strategy And Optimization Study Of An Iron And Steel Enterprise MRO

In 2015, the winter year of iron and steel industry in China. Steel demand became lower and operation became harder. Under the environment, it is urgent for the enterprise to enhance the internal management, solve the enterprise financial flow issues and excavate the deep-hidden problems in the manufacture. MRO(Maintenance, Repair & Operations) used for the maintenance, repair and operation in the manufacture enterprise, such as rolling bearing and screw, are various categories. Since MROs will not be any part of the final products, the inventory management of them always be ignored by the manager. Constrained by the normal manufacture management theory, the managers cannot find out the cost of being out of stock.This paper analyzed the iron and steel environment in Chinese mainland and the real situation of an enterprice and found out that the key of inventory management problem was the lack of effective prediction. Based on the analysis of characristics and the real situation, classified the demand into different types, then used grey prediction GM(1,1) model to predict the continuous demand, and formulate Grey & Markov prediction model to achieve the MRO demand prediction. Made the error analysis by comparing the predictive value with the actual value to measure the accuracy of prediction.After that, based on the study of inventory factors of manufacture MRO, this study according to the real situation concerned the out of stock cost, volume and lead time to improve the ABC inventory classification method. Then classified the MRO in this way. From the perspective of reducing the total cost, this study made Strategy inventory management,(S,s),(T,Q) and so on, six useful inventory strategies.Finally, in the case study, this paper quantified the out of stock cost by calculate the estimated output value in the period of out of MRO stock, which sustained the quantitative study of inventory optimization. The final cooperation of the optimization result showed that the useful and feasible strategies based on the effective prediction reached a great optimization of inventory management and cut down a great deal of enterprise cost.This study could benefit the development of demand prediction theory and inventory strategy theory, also could provide guidance for the internal management in the large and medium iron and steel processing enterprises.