Research On Optimization Of STBY's Raw Material Inventory Management

With the rapid development of economic globalization,manufacturing enterprises are facing increasingly complicated business environment.The changeable customer demand,shorter lead time of customer orders,longer procurement cycle of raw materials,higher prices and larger minimum order quantity leads enterprises to control costs for profits maximizing.Competition among supply chains has gradually become the focus of competition among enterprises.Inventory management is the key element of supply chain optimization and an important link to realize its value.Inventory management level directly determines the holding cost,storage cost and cash flow of an enterprise,and at the same time decides whether the enterprise can flexibly respond to market demand,which is the key to the success of an enterprise.Therefore,the management of raw material inventory has been paid more and more attention by manufacturing enterprises.This paper expounds the basic concepts and theories of inventory management and supply chain management,and briefly introduces the classical inventory management methods as well as the inventory management methods and theories under the supply chain.On the basis of these,combined with the external environment and current internal management status in STBY,through collecting and quantitative analysis of the internal information of STBY,the author proposes the issues in material inventory management and analyzes the causes of these problems.Secondly,under the guidance of modern inventory management theory,this paper provides the suggestions to improve all kinds of issues in STBY from three perspectives:market demand management of STBY company,such as customer classification management,standardization of risk procurement process management,optimization of customer demand deployment management,promotion of EDI and information sharing;internal management of raw materials of STBY company,such as improving the internal overall concept of supply chain,ABC Inventory classification management,management of raw materials with quality issue,purchaing proccess optimizing,manufacturing lead time shortening;management of raw materials at supplier side of STBY company,such as supplier management optimization,shortening procurement cycle,optimizing logistics design,optimizing management of VMI.It also designs a model to better manage raw inventory in STBY through checking whether raw materials inventory is reasonable.The purpose of this paper is to analyze the causes of issues in STBY's stock management of raw materials and to study how to optimize the management so as to make the level of raw materials stock more reasonable,at the same time,it aims to raise managers' awareness for the stock management of raw materials and reduce costs for more margin.It also helps improve the competitiveness of products so as to keep competitive advantages in the industry,also it provides experiences and references for other manufacturing enterprises in the middle of the supply chain.