Research On Supply Chain Inventory Management Optimization Of SP Company Under Uncertainty Conditionsl

As China’s automobile industry has developed into a mature period.the scale of the auto parts industry continues to expand along with increasingly keen competition.It is generally accepted that inventory management is absolutely essential for manufacturing companies,not only to maintain production process stable and sustainable,but also to play controls on operation costs,especially in the situation of suffering from trading disputes,COVID-19,natural disasters and rising material costs,resulting in extreme instability between demand and supply,as well as inevitable risk of supply chain disruption.In this context,through optimizing inventory management reasonably,it is of great significance for auto parts enterprises to improve their market competitiveness by having sustainable supply capacity with low cost and high service.By analyzing the current conditions of SP company’s inventory management through literature research and interview survey,identifies there are the uncertainties in supply chain causing the problems of excess or insufficient inventory of SP company.Proposes improvement plans from four aspects:raw materials,safety stock,E&O stock and supplier management.Firstly,through quantitative and qualitative analysis,the necessity and feasibility of raw material localization are determined.The inventory turnover cycle is shortened through localization strategies,raw material procurement costs come down,and inventory turnover rate is improved.Secondly,the simple exponential smoothing method is used to calculate the demand forecast,quantify the uncertainty of supply chain to set accurate safety stock,so as to improve on-time delivery and avoid additional freight.Thirdly,through the implementation of ABC-XYZ material classification method and organizing regular internal inventory management meeting,minimize the risk of inventory excessive and obsoleted.Process the E&O stocks with some discount or scrapping in a timely manner,thereby saving storage space and inventory management costs.Finally,strengthen the cooperative relationship with key suppliers,implement supplier consignment inventory management to lowest the total supply chain cost.Promote supplier’s growth and improvement on the basis of supplier performance evaluation.In order to guarantee the smooth implementation of the optimization plans.corresponding adjustments have been made in terms of organizational structure optimization,performance index construction,personnel training and supplier incentives.As a result of putting the optimization plans into practice,SP company has significantly improved inventory management,cost control and service level,which is conducive to enhance the company’s market competitiveness.In parallel,this study also has certain reference value for inventory management to other enterprises in the same industry.