Evaluation Methods and Optimization Policies for the Management of Telecom Material Inventory

Telecom industry needs a large variety of materials, of which the unit price varies widely, the usage is complicated, and the management methodologies are different. In order to conform to the ever-changing market environment and the aggravating market competition, the inventory costs must be reduced and the service levels should be improved simultaneously. Analyzing and evaluating each kind of material management situation is the foundation of optimization for telecom material inventory management. The traditional ABC classifications generally analyze and evaluate the stored materials statically from the perspective of the quantity of inventory cost. However, the inventory holding time and many other inventory costs are neglected. Based on the structure of inventory costs, this paper selects indicators such as the quantity and time of inventory holding cost, inventory management cost, and obsolescence cost, etc, to develop a new dynamic evaluation method for inventory management.