Research On The Optimization Of Production Cost Control Of The Sinovet Biological PRRS Live Vaccine

With the rapid development of Chinese animal husbandry industry in the 21 st century,animal biological products industry has become a sunrise industry.In recent years,a large amount of funds have been pouring into the industry of animal biological products.The number of enterprises has been increasing,and the market competition has become increasingly fierce.One of the key factors for enterprises being in a competitive advantage in the industry is production cost reduction on the premise of ensuring product quality.Sinovet Biopharm Ltd.(Sinovet)was founded as one of the high-tech enterprises in 2011 and located in China Medical City(Taizhou,Jiangsu province),which is mainly engaged in animal vaccine research,production,and marketing.Sinovet had paid more attention to the costs of product manufacture,marketing,and product management in the past.With the company's continuous in-depth analysis of modern operation and management mode,to the product inventory cost control also day by day takes seriously.The results of analysis indicated that well inventory cost management can timely meet customers' needs,improve the utilization of company resources,and reduce the operation costs and cash flow for product inventory,therefore,continuously improve the core competitiveness of enterprises.In this paper,the inventory cost of PRRS live vaccine of Sinovet was deeply analyzed.Firstly,the author use matrix analysis method to classify the Sinovet products and has found out that PRRS live vaccine is the company's cash cow business.The current status of inventory cost of PRRS live vaccine was analyzed with Pareto diagram and the main factors leading to raise holding cost and acquisition cost in inventory cost of PRRS live vaccine were figured out using Fishbone diagram.The analysis results showed that the main reasons for the high product holding cost are inaccurate market forecast and unscientific production planning,resulting in product inventory backlog;the main reasons for the high product acquisition cost are not well planning in material demand,randomly procurement,and unsystematic production operation planning.To address the identified issues,the author has used the quantitative method to optimize the market forecast of PRRS live vaccine,and the algorithmic priority model to optimize the main production planning system,so as to reasonably control the holding cost of PRRS live vaccine.The ABC classification method was used to optimize the inventory management of major raw and auxiliary materials and an economic batch ordering model was used to optimize procurement;EDD criterion,Gantt chart and economic batch production model was used to optimize production operation plan,which is resulting in the optimized the acquisition cost of PRRS live vaccine.Through the analysis of the optimized scheme and its implementation outcomes,the inventory cost of PRRS live vaccine in Sinovet has significantly decreased compared with that before optimization.This paper provides a solid theoretical basis for the company's future product inventory cost control through the optimization analysis of Sinovet PRRS live vaccine inventory cost.Meanwhile,it also has provided a key reference for the rapid development of animal biological products industry in product cost control.