Case Study On G Pumped Storage Power Station-Inventory Classification Management

As the one of the three resources of profit in modern enterprises, inventory management is becoming an important method in reducing cost, preventing redundancy of liquid assets and improving core competence.Scientific and rational classification and management of inventory is an effective measure for the enterprises to reduce inventory cost, rationalize the distribution of resources and improve operational efficiency.G Pumped Storage Power Station(hereinafter referred to as "G Station") is a large enterprise under the jurisdiction of China Southern Power Grid Company. It plays an important role in many aspects, such as promoting electric transportation from the west to the east, balancing power supply and demand in different regions, griding peak and valley difference, improving the power grid emergency backup level and ensuring the stable operation of the power grid. Under the guidance of "Placing the security and stability of electricity production in the first place", many problems accumulate continuously in G station in material reserves management, such as high inventory, irrational materials classification, low inventory turnover, ect.. Based on these problems, this paper carries out in-depth research on G station’s material reserves classification and category management strategies.Firstly, this paper summerises the existing defects in material reserves management in G Station. Secondly, on the base of studying related theories and literatures domestic and overseas, this paper adopted Kraljic Model as the research method to study the best approach to inventory classification. The first step is to establish a products evaluation system based on two dimensions, products importance and supply risk; then after fully considered their effect factors, the author used multiple evaluation methods, such as Experts Grading Method, Fuzzy Multi-Criteria Decision Making(Fuzzy MADM), and Multidimensional Scaling(MDS), etc., to make a refined and scientific classification of Strategic Products, Leverage Products, Bottleneck Products and General Products, as well as the management strategy and popularization suggestion respectively.As last, this paper makes suggestions on classification standards promotion, application of classification standards on reserve list forming and dynamic optimizing, classification reserve strategy solidification via information technology system.