Research On Inventory Level Optimization Under Supply Chain Circumstance In A Company

Cost control is the eternal theme in modern enterprise administration.The excellent enterprise inventory management,increases enterprise profit.With inventory turnover improvement,enterprise accelerates cash turnover,decreases operation cost,and optimizes customer service level,etc..All the mentioned above,finally save enterprise cost.Inventory is an important part of enterprise floating assets.Inventory will definitely occupies massive cash flow.The ultimate purpose of inventory is for sales,which is the basic characteristics of inventory different from fixed assets.Thus,inventory management plays a pretty important role in enterprise floating assets.With the violent competition in China market,enterprise takes more and more care of inventory management.The excellent inventory management,not only prevents account discrepancy,ensures FIFO(first in,first out),but emphasizes to decrease enterprise cash occupation level,raise inventory turnover speed,optimize capital turnover rate.Thus,helps enterprise strengthen cost control,operate low cost strategy,which has potential significance for enterprise profit increase.Inventory takes the function of modifying production and sales.The massive loss caused via improper inventory management,sometimes brings deathblow to enterprise itself.Proper inventory management,means to optimize inventory within reasonable scope.No stock space waste by material backlog.However,customer service and On-time delivery demand can be fulfilled.The significance of inventory management is to ensure inventory meet sales demand with the most economic method.Supply chain competition will be core point between enterprises competition in the near future.Supply chain management is enterprise administration development orientation.Systematic optimization is emphasized point in supply chain management.With this new trend background,inventory management requires systematic optimization accordingly.The essay focuses on A company inventory level management problems such as high stock level,insufficient bin usage,low stock turnover etc.,researches the method to optimize A company inventory level under supply chain circumstance.Base on A company supply chain circumstance,and existed problems in inventory management,the essay devotes to connect sales forecast,MRP,pull mode in lean production,MTS/MTO,ABC classification,safety stock setting,production planning,production leadtime monitor,Right-first-time monitor in dyeing color process,and information flow,to optimize A company inventory from systematic supply chain view.A company belongs to textile industry,but the research on A company inventory level optimization under supply chain circumstance has reference significance for other industries.