Shanghai General Refrigeration Industry Co., Ltd. is a Conglomerate contains development & design, product manufacturing, project complete sets and after-sales service, its main capital lies in inventory. Combined with the current inventory management of Shanghai General Refrigeration Industry Co., Ltd. , the thesis would make analysis on the existing problems of it inventory management, the means and methods to improve inventory management through ERP management software; then shows some ideas about using ERP system to manage inventory through the implementation of ERP system.