Inventory Control

The Application and Development of Inventory Control in Enterprise Supply Chain

Introduction

Along with the further expansion in the scope of competition, the mechanism of developing the superior and weeding out the inferior has been establishing in order to create a sound macro-environment and favorable market conditions for the further development of enterprises. According to the perceptions of tradition, the majority of corporations tend to lay more emphasis on the link of marketing. They exert their utmost to set up a series of marketing strategies and steadily broaden various marketing channels in the hope that these enable to increase their profits, thereby promoting the competitive ability in the market. From the angle of modern management conception, however, enhancing the core competition of enterprises is not only represented in the external sales achievement, it is also determined by the internal coordination and administration which account for a considerable proportion in the costs of companies. Data from Business Logistics website（2002） shows that in the past three decades, costs of supply chain occupied high specific gravity of running costs, and in certain industries, the proportion was extremely high to over 75%, nevertheless, under the optimal environment of supply chain management, the competitive advantage of costs is, in average, 45% more than commonly competitors. Stated thus, it is irrefutable that the issue of how to establish an integrated and optimal management system must be taken on board.
As has been widely recorded, the costs of enterprises supply chain main include following items: financial costs, operation costs of information system, inventory costs, expenses of purchasing materials and costs of order management etc. “The inventory costs, which usually accounts for at least 30% of the total cost, is one of the most essential parts of supply chain costs.”（Wen Chen, 2010） Therefore, making massive efforts to improve inventory... [continues]

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