Traditional inventory management methods and techniques of traditional inventory management

The traditional inventory management is aimed at a single enterprise, and its main purpose is to classify the inventory of the enterprise, determine the ordering time and quantity, and minimize the total inventory cost of the enterprise. Specific methods mainly include economic lot size model (EOQ) and inventory classification management method (ABC). The technical means commonly used by production enterprises include material requirements planning (MRP), manufacturing resource planning (MRP II), just-in-time production (JIT) and lean production. MRP is based on market demand forecast and customer orders. According to the product production schedule, product material structure table and inventory status, the demand and demand time of required materials are determined by computer data processing, and the traditional inventory management method is improved by computer technology. The basic idea of just-in-time production mode can be summarized as "producing the required products according to the required quantity when needed", that is, pursuing a production system with no inventory or minimum inventory through production planning control and inventory management. However, MRPⅱⅱ and JIT only consider the utilization of internal resources, and all optimization work focuses on the optimal application of internal resources.