Abstract

Due to the growing of LCD TV industry, traditional CRT TVs have been replaced by LCD TVs. Display Search report indicates that the growth of global LCD TV demand still has a lot of potential and CRT TVs will be totally replaced by LCD TVs in 2014. Also, LCD TVs forecast to reach 211 million shipments in Topology Research Institute vice-director Yang Shengfan pointed out - China will overtake the United States and become the world's largest LCD TV market in 2011. South Korea and Japan have 60% market share in global LCD TV market, but only 20% in China's LCD TV market. Therefore, China's local TV brands still have large market potential in China's market. For the key component of LCD TVs, TFT-LCD, Taiwan's suppliers cover about 50% TFT-LCD supplies, which are far beyond South Korea's supplier, like Samsung and LG. Therefore, as the major TFT-LCD suppliers, Taiwan's panel companies have strong relationship with China's LCD TV market. This research focuses on TFT-LCD, the key component in LCD TV supply chain, as research object to discuss inventory management and system development of TFT-LCD module joint ventures, which influenced by implementing new business model between LCD TV own brand companies and panel supplies. The joint venture is an independent company which usually runs daily operations by itself, and the party which holds more shares than other parties should state the inventory on its financial reports. Thus, the higher inventory in a joint venture, the bigger loss on a company’s capital and opportunity cost. In traditional management mode, the parent company which holds more shares than others usually monitors inventory of joint ventures through financial report every month. This research uses a case study to discuss the insufficiency in monitor inventory by review monthly financial report. Therefore, the case study implements Lean Six Sigma project to develop the information sharing structure of inventory management system and the changes of inventory managing. Also, the paper analyzes the integral process and benefits of inventory management changes. In the future, the company can refer to improvement process and system constructing of this case study when the company faces the issues related to inventory management of joint venture and subsidiary in supply chain.

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