Abstract:This paper sets out from the control methods to cut down procurement cost and warehouse cost. It not only analyzes respectively from procurement cost and warehouse cost, but also to find a balance between these two contradictory costs. Therefore, reduce the total costs of procurement cost and warehouse cost to cut down the whole cost of the company.
This paper mainly uses methods of the literature collection, comparative analysis, factor analysis, trend analysis and other methods to analyze and control on procurement cost and warehouse cost in Sanfeng Glass Company. Firstly, analyzes the current situation of procurement cost and warehouse cost in recent three years in Sanfeng Glass Company, through the internal comparison in the company and to eliminate the factors of yield, calculate the unit of procurement costs and warehouse costs, and then to compare with the costs of glass industry, to look out the company’s costs problems and find out the reasons; Secondly, respectively from the two aspects of procurement cost and warehouse cost, then put forward the solutions of Sanfeng Company’s current situation; Finally, find out the balance point between these two costs, using the economic purchasing quantity, to selective analyze the procurement and warehouse costs control in Sanfeng Glass Company.
Keywords Procurement costs Warehouse costs Cost control...