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Inventory Control in a Company Based on Supply Chain Management

Author: ZhangNa
Tutor: HuoYanFang
School: Tianjin University
Course: Business Administration
Keywords: Supply chain Inventory control Bullwhip effect VMI
CLC: F274
Type: Master's thesis
Year: 2012
Downloads: 270
Quote: 0
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Abstract


With the rapid developing of the economic globalization in the21stcentury, moreand more experts recognized that the marketing competition of the21stcentury is notonly the product competition, but also the supply chain competition. The operationmodel of enterprise is turned to small batch and many varieties models; and it hasbeen a problem for a company that how to respond customer demand quickly withlower operational cost. Inventory level not only affects cash flow and operation costof company, but also restricts the performance of the entire supply chain. Due to thetraditional inventory management model is difficult to adapt to the environmentalrequirements of supply chain management, based on supply chain managementinventory control is particularly important to study.The object of this thesis is a wholly-owned Europe enterprise, mainly product iscompressor, this company has a large number of finished products and raw materials,the manufacturing process is complex, and inventory management is difficult, thiscompany is a representative in the manufacturing industry. This thesis does someresearches in the field of inventory control system from the perspective of supplychain, including the following issues: Firstly, this thesis summarized and analyzed thesystem of supply chain inventory control, includes definition and causes and focus onthis compressor company current inventory control problems and reason. Secondly,this thesis researched affect factors of inventory control in the supply chainmanagement system include reason and how to reduce the affect of bullwhip effect(demand amplification effect), and applied seasonal index to make demand forecastplanning. Next, according to current compressor company inventory control situation,this thesis analyzed the consignment inventory and VMI, analysis the EOQ, ROP andMRP. Finally, this thesis analyzed the limitation of the compressor enterpriseimplement supply chain collaboration and information sharing, and gave somesolutions based on the current situation, such as using schedule sharing web site toprovide demand forecast to suppliers and third party warehouse.

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