Research On Optimization Of Finished Products Inventory Management In T Company

The transmission and distribution equipment industry is the infrastructure industry for various other industries,and as a traditional industrial supplies manufacturing industry,inventory management is even more crucial to enhance the competitiveness of enterprises.The Company T studied in this paper is the sales company of W Group in Hangzhou,Zhejiang Province,and is mainly responsible for the establishment of channels and sales of finished products of W Group’s transmission and distribution equipment in Hangzhou City.As a back-end sales company,constrained by a multi-species,low-volume marketing model and a weak position in the supply chain,T Company tries to rely on a large amount of inventory of finished goods to cover up various problems within the organisation.This unscientific inventory management model has resulted in serious inventory overstocking,low inventory turnover rate,high inventory tied up funds and other problems in T Company.The profitability of finished goods sales has been declining year by year,affecting the profit level of business operations and severely restricting the business development of T Company.It is on this basis that this paper summarises and composes the research of domestic and foreign scholars on ABC classification management,market demand forecasting,safety stock control and inventory ordering models,taking Company T as the background,from ABC classification theory,demand forecasting theory,safety stock theory and inventory ordering theory.Firstly,interviews were conducted in T company,and QFD model analysis tool in quality management was introduced to consider the company’s inventory management objectives and actual demands for finished products of power transmission and distribution equipment,and QFD "House of quality" relationship matrix was used to quantify the main problems and key factors.At the same time,combined with the collected inventory data and financial data for in-depth analysis,it found that T company’s finished product inventory management has many problems,such as sluggish inventory,low inventory turnover,low storage operation efficiency,long procurement lead time,and summarized the root causes of these problems;then,we separately studied the ABC classification management,Minitab index Then,the company made evidence calculations from ABC classification management,Minitab index,demand forecasting and inventory ordering model to find out the suitable method for inventory management of finished goods in Company T.Finally,combined with the actual situation of Company T,the company put forward the optimization plan of finished goods classification management,market demand forecasting,inventory ordering management and warehouse operation management,etc.;and also put forward the guarantee measures from the aspects of ERP inventory function development and application,normalization of daily warehouse management and strengthening the performance assessment of inventory management.The paper also proposes safeguards in terms of the development and application of ERP inventory functions,the normalisation of daily warehouse management and the strengthening of inventory management performance assessment.It is hoped that the theoretical application of this paper will provide Company T with feasible optimisation solutions to improve the efficiency of finished goods inventory management and reduce the capital and cost occupied by inventory.The finished goods inventory management problems of T Company has some similar characteristics with other transmission and distribution equipment enterprises and their sales enterprises,so the research of this paper can not only improve the finished goods inventory problems of T Company,but also have some reference value for the finished goods inventory problem of other companies,and help these companies to build a scientific and reasonable finished goods inventory management optimization solution.