Study On M Company Inventory Improvement

Inventory control significantly impacts the economic benefits of enterprises,as well as the supply chain with the enterprises connected.Inventory could help to protect enterprises from the operating risk caused by the uncertained factors,as well as helping to balance the demand and supply,in order to improve the state of operation of enterprise and raise the customer service level.However,the exceeded inventory level will bring the huge cost stress to enterprises and cause the turnover isuse of capital.Along with the technology innovation and quicker iteration for the electronic products,the life cycle of the electronic products is becoming shorter and the depreciation rate is faster than before.The exceeded inventory will bring much more risk to the electronic manufacturers on inventory control.This article analyzes the current inventory state of M company that is an original equipment manufacturer and figure out the deeper reasons that cause the exceeded inventory,such as low accracy of the demand forecast,the material integrity issue due to long lead time for some raw materils and the simplex method for inventory control.After that,based on the current supply chain mode,we accordingly bring up the relevant improved solutions,such as using the time series prediction method to improve the demand prediction,to combine the ABC classification method and Kraljic matrix classification method to imporve the classification management of the inventory,to use the satistics method of chi-square goodness of fit test to provide the estimated data for safety stock setup and to introduce the 3rd party logistics to improve the logistics,storgae and the inventory control on the VMI hub warehouse.Finally we analyze the actual effects before/after implementing these improved solutions to verify if these improved solutions are effective.