This paper is based on the analyzing the features and the questions of inventory management of successive manufacturing enterprises, using the inventory management theory and the system dynamics theory, on the assumption of combining actual situation of inventory management of Hongyu Corporation, analyzes the relations of kinds of factors which affect the inventory management, using the system dynamics method, establishes the causality graph of kinds factors which affect the inventory management in Hongyu Corporation, including the causality graph of cooperation part inventory management, semi products inventory management, profit and the whole inventory management in Hongyu Corporation. Based on the causality graphs, the paper establishes the system dynamics model of inventory management of Hongyu Corporation. The system dynamics model of inventory management in Hongyu Corporation which was built in this paper is accurate and steady, especially satisfied to the practical production of Hongyu Corporation and successive manufacturing enterprises, it greatly helps to raise the inventory management level of Hongyu Corporation, so this model has great significance in both theory and reality for inventory management of successive manufacturing enterprises.
Inventory Management Analysis under the System Dynamics Model