A Study On Optimization Of Inventory Management Of Company A

With the rapid development of the Internet Economy,consumers are increasingly chasing differentiation,personalization,and accessibility.Company A is in the home appliance industry.It faces a high concentration of downstream customers,a low entry barrier,and accordingly a fierce competition in the industry followed with smaller cost and price differences,rapid delivery supported by inventory has become the main battlefield in the competition.To cope with competition and adapt to market changes together with customers at the same time,Company A needs to manage a longer supply chain and establish a more reasonable inventory structure and inventory level.This paper,to improve the inventory management process on the premise of improving customer delivery,analyzed the current inventory structure of Company A,reviewed the inventory management processes in multiple layers from the daily plan management level to the deep supply chain management level to identify the optimization points.Then under the guidance of Total Inventory Management(TIM)combined with inventory management tools including ABC Classification,Economic Ordering Quality(EOQ)Model,Kanban System and other methods,this paper proposed the optimization plan and then managed the implementation process of the plan:1),set up the data-based inventory target at a manageable category level;2),equip the daily planning management process with standard and scientific methods;3),improve the S&OP process by enhancing demand review and improve the communication efficiency by report visualization;4),Form a mechanism to promote the continuous focus on delivery time throughout the entire chain.Through the research and the implementation of the optimization plan,Company A has clear inventory goals,a scientific and standardized inventory planning framework,clear demand management principles,and an efficient supply chain communication mechanism.Furthermore,Company A has formed an open environment for continuous improvement of supply chain lead time.Therefore,while ensuring the high standard delivery performance for customers,Company A has achieved higher inventory turnover and reduced obsolete inventory rate.