Optimization Research Of Raw Material Inventory Control For J&S Business

Review the global economy environment,international trade frictions are becoming more and more fierce,Global trade is weakening and orders are slowing down,and the scope of influence keep expanding.Many manufacturing industries have been seriously affected,they have streamlined their structures one after another,and even shifted their business to countries with less impact from overseas trade disputes.The outbreak and spread of the global new crown make the manufacturing industry and supply chain worse.The implementation of cost leadership strategy has become one of the important choices for enterprises to survive or gain competitive advantage.In this paper,J Company(electronic contract manufacturer)is no exception.J company is an American multinational enterprise established in Florida in 1966.It has five major production bases in China,mainly producing electronic printed circuit boards.S division is mainly responsible for helping a leading enterprise in the solar energy industry to produce solar inverter,optimizer,and other products,with an annual sales scale of about 500 m US dollars.Under the influence of Sino US trade frictions,the instability of customers’ market demand and the whole supply chain,intelligent and many other factors,only by continuously improving and exceeding customer satisfaction can we occupy more market share in the torrent of competition.In the operation of the whole enterprise,inventory control is an extremely important part.This paper takes a business unit of J company as the research object and uses the research method of combining normative research and case study to comprehensively describe the basic situation of s business unit of J company and the current situation of its inventory control cost.Through the analysis of the financial statement of the business division,it is concluded that the main problems of inventory control in the operation of J&S business unit are the overstock of raw materials and the untimely delivery of finished products,which caused high storage costs.In view of the above problems,this paper makes a comprehensive analysis from various fields and aspects and concludes that the lack of accurate demand prediction mechanism leads to the purchase inventory of raw materials exceeding the actual demand,not well control on the material delivery from purchasing,also low efficient at raw material receiving are the main reasons,the improvement and optimization countermeasures are formulated based on the effective improvement and optimization countermeasures,further guarantee measures are taken to ensure the effective implementation and implementation of the improvement and optimization countermeasures.This paper starts from the inventory cost management of EMS enterprises,from the perspective of cost management,through the study of inventory control theory,combined with EMBA the theoretical knowledge involved the knowledge from the courses learning,guided by solving practical problems,studies and explores some new and fast inventory control methods,which provides a good reference for other enterprises in improving inventory cost,optimizing inventory control process,and improving inventory control.