Study On Actions Of Material Inventory Improvement In Autoliv Changchun

Inventory is set up for ensuring series production smoothly and on time deliveries to customers although customer requirements fluctuate unexpectedly.Excessive stock will take up plants' liquidity and labor resources.If materials were kept too long a time,it would bring quality or performance issues.As to the materials with expired date,storage will lead to failure for a long period of time.All of these will result in material scrap.Therefore,the level of inventory management is really important to the companies,which will affect the profit of the companies negatively.For automotive manufacturing and parts industry,due to the large variety of parts and suppliers,it is very difficult for inventory management.Take Autoliv Changchun as an example here,in depth analysis of its current inventory status and overstock reasons,optimized schemes on inventory management are provided.In the first chapter,this paper discusses the importance of inventory management for enterprises in the market and makes a summary on relevant theoretical researches with putting forward its own opinions at the same time.The industry background and operation status of Autoliv Changchun are presented briefly in the second chapter and then the root causes of high stock at plant are found through the depth analysis on fluctuated forecast data,high standards on safety stock,order transmission delay and so on.In chapter three,related actions or measures are put forwarded to better inventory.For customer forecast,we need to collect history data and classify customers into different types first and use both quantitative predictive analysis and qualitative prediction method to predict demand in different terms and also to variance customers to narrow the gaps between forecast and actual demand for better forecast result.In terms of safety stock setup,ABC classification is adopted first and parts are divided into three types.Besides,considering the variance of transport terms,supply risks and demand changes,parts are categorized by critical factor analysis.Combining the results from ABC classification and critical factor analysis,the final part category is obtained.The safety stock of different parts is resetting to reduce the factory inventory level.Last but not least,the aspects of purchasing factors such as order cycles and supply chain systems are also required to improve to shorten inventory adjustment terms and realize fast response on demand change.In the last chapter,the thesis stresses on the importance of inventory management to employees from company level.To build a project team,make regulations and equip required resources are also needed to guarantee the smooth implementation of the plan.Since inventory management is a long-term process,companies need to continue to improve as the external and internal environment changes.Besides helping Autoliv Changchun to carry out inventory management optimization schemes,it can also bring some reference to other auto part plants to some extent.