Research On The Jointly Management Inventory Of Finished Products Of S Company And Distributors

Nowadays,the diversification of customer demand for products and the high level of service requirements have transformed the competition among enterprises into competition among supply chains.Inventory management is an important part of supply chain management,so how to reduce inventory costs,improve profits and customer service levels is a concern for all companies.In order to better meet the needs of customers,companies usually prepare stocks in advance to shorten the supply cycle.However,because the demand information between the upstream and downstream companies in the supply chain is not shared,it will bring the bullwhip effect.The bullwhip effect make the high level inventory and cost,which brought a very adverse impact.Jointly management inventory is an inventory management model in which upstream and downstream companies can share risks and benefit.It can effectively weaken the negative impact brought by the bullwhip effect to the enterprises.Enterprise can jointly formulate inventory plans by establishing a coordination mechanism and share demand information through establishing effective information communication channels.Sharing demand information among enterprises can largely solve the demand amplification phenomenon when companies manage their inventory respectively.By sharing information,both parties can save inventory levels in a reasonable state,thereby reducing inventory costs and excessive inventory retention,accelerating the company's inventory turnover and improving the efficiency of the supply chain.This paper first introduces the related background of the electrical industry and the theoretical knowledge of supply chain inventory management and jointly management inventory.Based on the relevant literature,the paper explains the advantages of joint inventory management in inventory management methods.After analyzing the status of S company's inventory management,the paper points out that S company has problems in inventory management,such as high inventory levels,high inventory costs,low profits,etc.and analyzes the causes of these problems.Then the paper proposes that the use of joint inventory management theory can solve the company's inventory management issues and points out specific implementation strategies.Finally,the inventoty cost and profit model before and after the implementation of jointly management inventory by S company and distributors was established.Through example analysis,the article proves that the implementation of jointly management inventory for finished goods can reduce costs and increase profits for S company and distributors.At the same time,the article also points out the protection conditions needed to implement joint inventory management.