Study On Inventory Control Improvement For W Aircraft(China) Company

Inventory is very important for most of enterprises.Because the type and quantity of inventory will affect competitiveness of enterprises.For quite a long time,inventory has been a problem of many enterprises,especially the rapid development of small and medium-sized enterprises.With a growing number of customers and sales opportunities,how to control inventory reasonably has been the answer that enterprises are searching for.Inventory is a kind of resources with price,and reservation of inventory is a kind of valuable resources temporarily stored to meet the future needs of customers.If we have too sufficient inventory,we will face the problem of low cash flow,which reduces the profits of the enterprise;if we have low level of inventory,when the demand of customers increases sharply,we will easily face the risk of shortage,and it will cause the increase of shortage cost.The inventory can not only prevent us from shortage,but also alleviate the contradiction between supply and demand,and finally meet the needs of customers.So the main topic of the enterprises is how to balance the advantages and disadvantages between supply and demand,it will help to reduce the inventory cost.This is very important for the survival and development of enterprises.Therefore,the effective inventory management has become an important part for every enterprise.The development of China’s Aviation Market is getting better and better,its position in the world is growing,and is playing an important role of global aviation industry.China’s civil aviation market has become a high-speed growth region as theIVbackbone of the global aviation industry.In the past decades,China’s civil aviation market is the only region that maintains double-digit annual growth.In 2017,C919 made its first successful flight in Shanghai Pudong airport.ARJ21 plans to complete the production of 100 shipsets by the end of 2020.China’s aviation industry has become a rising star in the world’s aviation industry.As the largest aircraft components distributor in the world,main business of W Aircraft is to provide aircraft components to worldwide customers.Since the general lead time of aircraft components is about 30 weeks,W Aircraft have to invest a considerable amount of inventory.The larger the number of inventory,the less the risk of shortage,and the greater risk of Dead Inventory accordingly.Considering the problem of cash flow,the reasonable control of inventory has become one of the core things of W Aircraft.Considering the current environment of the aviation industry,this paper starts with analyzing the status of inventory control at home and abroad.Aiming at the problems encountered by aircraft enterprises and W Aircraft China in the process of inventory management,it begins with analyzing the customer demand forecast data as well as the historical sales data through Moving Average Method and Exponential Smoothing Method,and it proves that using moving average method is more accurate when analyzing forecast.With the help of AHP and ABC classification,four standards are set up in the criteria layer,namely lead time,classification of common or unique parts,annual sales quantity and unit price,it helps ABC classification of inventory to be more effective.Considering the current situation of W Aircraft and various kinds of inventory,the more suitable inventory control strategy and the supplementary strategy of inventory management are given.Use flexible of inventory methods,such as min &Max,EOQ,safety inventory model and periodic inventory model,and respectively for class A,class B and class C materials for inventory management optimization.Finally,in addition to the technical aspects of inventory management,this paper also points out that it is necessary to ensure the whole company’s understanding and pay attention to inventory management,emphasizing that inventory management relies on the participation and joint efforts from all relevant parties.In addition,themethod of dealing with dead stock is added.This paper mainly indicates that the inventory management can be optimized by studying the inventory management optimization strategy of W Aircraft(China),so as to learn from the successful experience of inventory management optimization and extend it to the warehouse of W Aircraft in the world to optimize the overall inventory management.At the same time,it also provides some valuable decision-making basis for other enterprise managers in inventory management,for the reference of enterprises with similar problems.