Research On The Application Of Multi-Echelon Inventory Control In H Company

The global epidemic and the tight supply and demand of electronic components cause the serious imbalance in the supply of the overall IT industry.IT distributors have to improve the inventory level in order to maintain their supply capacity.At the same time,the instability of product demand tends to lead to the phenomenon of demand amplification between each node in the supply chain.In the case of unstable supply and demand,IT distributors will face the problem of stock shortage and inventory overstocking at the same time,how to enhance the company’s rapid response ability,reasonable optimization of inventory control strategy,to IT distributors inventory management brings more challenges.This thesis analyzes the product characteristics,inventory control and purchase order procedures of H Company,an IT distributor,and takes appropriate optimization schemes from three aspects.Firstly,according to the ABC-XYZ matrix analysis results of H company’s product sales sum and demand volatility,four multi-echelon inventory management modes and ordering strategies are proposed under the supply chain.For the products with stable demand fluctuation and large product amount,VMI and JIT can reduce the lead time of purchase orders.For products with large demand fluctuations and a large amount of money,the combination of joint inventory management(JMI)and(s,S)continuous inventory ordering strategy,through RDC(regional distribution center)to coordinate the demand of each node in the enterprise,can reduce the safety inventory of each node and improve the customer service level;For the products with a large proportion of categories and a small proportion of sales sum but relatively stable demand,the inventory control mode of central inventory management(CIM)can be adopted combined with the application of(T,s,S)ordering strategy to improve the turnover days of unsalable inventory.Lead times can be reduced by purchasing to order(PTO)for products with a bespoke nature where demand is extremely volatile.Secondly,from the perspective of organizational management efficiency,it analyzes the existing problems in the organizational structure of H Company and redesign the organizational structure of supply chain inventory department.Finally,through the improvement of the purchase order process,the waiting time is shortened,and thus the ordering cycle is shortened.