Ls Companies’ Chemical Raw Material Inventory Management Strategy Research

Chemical raw materials have shelf life and have strictly requirement for storage conditions,what is more,their price usually fluctuate a lot.It is easy to be depreciated and worte off if the inventory is higher,it will also take up a lot of fund and increase the operating cost.The quantity of chemical raw materials used in LS Company is very big with great variety.Many of them are imported from oversea and some of them are dangerous cargo.LS company needs to keep balance between controlling inventory cost and boosting the service level.So inventory management is very important for it.Finally it analyzes LS companies’raw materials inventory status as per it’s actual situation and found there are some problems existed.Such as stock level is too high、the inventory managerial confusion、too many slow-moving items、information sharing is not enough.To solve this problem,this paper suggest to improve the demand forecasting、manage the stock through supplier、strengthen daily management of inventory、use classify and manage the stock based on the character of the chemicals、control the slow-moving items in advance,finally to set a chemical information-sharing Platform based on internet as the optimization solution.Hope this research will be helpful for similar companies both in China and oversea.