Research On The Optimization Of M Company’s Inventory Management

Affected by the COVID-19 ravaging overseas and some unusual market factors,the semiconductor industry has been impacted by a continued chip shortage due to the complexity of supply chain and result in the raw material market being in the short supply,which leads to the supply chain of car industry and on time delivery are suffering the unprecedented challenge.M company is an automotive company which engaged in design,R&D,production,and sales different kinds of controllers on cars,electronic technology,electronic control system.The major raw material for M company’s finish goods is IC chip.based on the condition that M company has low efficiency of inventory management,backward level of electronic management and low utilization rate of storage,it’s crucial to upgrade the inventory management level.On the basis of literature research,this paper made the investigation by in-depth interview surveys with employees and figured out the main reasons for low efficiency of inventory management,backward level of electronic management and low utilization rate of storage which are as follow: short of effective inventory management process including the lack of scientific management of procurement process,ambiguity of process flow and responsibility of slow-moving material and the irregular management of customer delivery;deficiency of development strategy of high technology management including backward ideas of modern technology management,the less paid attention to the construction of information system,the weakness of the current ability of technology;insufficiency of rational warehouse management arrangement,including poor analysis of value stream,the missing of reasonable material storage and delivery design.The optimize strategy of inventory management is put forward on that basis,including speed up the rapid response of inventory material planning and the flow of inventory by applying the theory of material planning management;upgrade the level of electronic management through continuous optimization inventory management tools-SAP and system integration;establish reasonable material storage design and logical material distribution line according to lean logistics management concept and method.The conclusion of this paper is of great value for increasing inventory turnover rate,improving the customer satisfaction,reducing the inventory management cost,enhancing both inventory management efficiency and the integrated management.It also has significant reference value for other companies in the same industry.