Research On Inventory Management Of LH Company

With the rapid development of the world construction machinery market,the demand forquality,function and service level from customer is getting higher and higher,which caused the increasingly fierce competition of construction machinery enterprises.This has caused the low profit,difference customer demand,the shortened product life cycle.The response time is getting shorter.Construction machinery manufacturing enterprises are playing the key role within the entire supply chain,and the inventory management is one of the most important way to reduce the operating costs of enterprises.In order to achieve the goal of optimizing inventory levels,reducing inventory costs,and improving operational efficiency,construction machinery manufacturing enterprises need to find their own inventory management.This paper takes LH Company for research,combines the industry and product characteristics of construction machinery manufacturing enterprises,and conducts research in LH Company to find out the problems of the company's inventory management,and systematically analyze the causes of the problems and design a reasonable solution.First,the paper introduces the relevant theories such as inventory management,supply chain management,etc.Secondly,it introduces the company profile,organization structure and operational process of the LH Company,analyzes company environment,as well as the characteristics of the industry and products,and designs the systematic improvement for the existing problems in the current inventory management of LH for the aspects of current situation of forecast,supplier management method,internal supply chain management,and the performance evaluation.By improving the sales forecast accuracy,modular optional material forecasting methods,optimizing of supplier structure,combing internal supply chain,optimization of organization structure and performance appraisal methods,promoting of VMI management methods for local suppliers.To achieve the purpose of reducing the quantity of raw materials;finally,through establishing strategic partnerships with key customers,strengthening employee inventory management awareness,establishing company inventory management assessment mechanism,and improving the company's information management level.To ensure the implementation of the improvement...