Production Material Inventory Control Optimization Research In Z Company

During the past ten years,the domestic automotive industry has a great development.Lead by the OEMs,auto parts industry also has a rapid growth with the expanded industry scale and a growing fierce competition.The automotive parts enterprises not only has a breakthrough in the technology but also been getting a higher technical management level.Companies are now paying more attention to the inventory management with the refinement of management functions and trying to get a more efficient cash flow by a better inventory control.The Z Company has been looking for ways to reduce the inventory during the past years.This paper will study with hierarchical inventory,divide the inventory to finished goods stock,working in process stock and purchased components stock and reduce the total inventory level by reduce each part of stock.The finished goods inventory should closely follow the customer demand and avoid customer line down by set a safety stock to cover the risk from both customer and internal manufacturing.The working in process stock should insure the rack production and final assembly with the analysis of production industrial engineering process.To better cover the risks from supplier purchased components stock should be set with different supplier risk level.Finally,this paper will simulate inventory situation,convert to the inventory days and compare the results to the actual situation.As a result the ways in this paper is useful and practical.