Inventory Optimization : Based on Purchasing Activities Analysis

Abstract

Inventory optimization is a popular topic among companies, especially in SMEs. Based on the traditional inventory methods, some other operations management concepts were considered to improve the inventory performance more comprehensively. On the basis of a case analysis for Company X, some attampts were made to achieve the goal of optimizing inventory from purchasing activities, purchasing strategy and supply chain points of view.

Regarding the imbalanced inventory structure and imperfect inventory management system of Company X, some improvement solutions including inventory replenishment method, overall purchasing strategy and JIT-QM Joint strategy were proposed in order to solve the current existing problems and promote the long-term development of the company.

The recommended solutions described in the thesis were presented based on relevant literatures and theoretical calculation methods, thus the practicality of them needs to be tested empirically to demonstrate a broader support. Nevertheless, the new ideas and methods suggested in the thesis will enhance the vision of purchasing executives during the decision-making process, aiming at minimizing the inventory costs and maximizing the services.