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Research on Multi-Echelon Inventory Optimization of Automobile

Author: LuoYongLai
Tutor: ZhouBingHai;ShiYunXiang
School: Shanghai Jiaotong University
Course: Logistics Engineering
Keywords: supply chain management automobile service parts multi-dimension classification multi-echelon inventory control model demand forecast
CLC: F426.471;F224
Type: Master's thesis
Year: 2011
Downloads: 150
Quote: 0
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Abstract


The domestic automobile industry soared in recent years, the sales of Chinese auto market was highest in the world now. Followed by a demand for automotive service parts continues to expand, the domestic automotive service parts market will has a great potential. Statistics show that vehicle sales with profits shrinking, sales of automotive service parts in the automotive industry has become the largest source of profits. Inventory costs is the largest percentage of the service parts total cost, therefore, how to reduce the inventory cost effectively is important to auto companies.The research goal of this paper is to reduce the total cost of multi-echelon inventory in the precondition of keep the current customer satisfaction level. Throughout a comprehensive analysis of the current characteristics and problems of automotive service parts, the paper gives a total solution that focused on the multi-dimensional classification for service parts, multi-echelon inventory management strategy, multi-echelon layout and inventory information sharing between all levels of inventory and other issues. This paper is based on the V Corporation’s project of Multi-echelon Inventory Optimization. And the reseach aspects as following: Based on the ABC classification method, this paper proposes a multi-tier and multidimensional classification method to make reasonable classification; Suggests a centralized coordinated control strategy of multi-echelon inventory management, and gives multi-echelon inventory layout strategies for different types of service parts; Through all of above efforts, the ASCs will still have a dead parts problem, submits an information system integration and enhancement solution to resolve it.Finally, the paper briefs the entire process of multi-echelon inventory optimization of V Corporation, which significantly increased the inventory turn rate and reduced the amount of urgent order.This paper can provide some references for other similar companies which care multi-echelon inventory management.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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