In order to strengthen the materials management, speed up the construction of efficient warehousing system with reasonable inventory level, achieve the effective matching between the current inventory and the demand in material requirement planning stage, this paper improves the level of inventory management and utilization efficiency of inventory resources. An inventory balance system based on ERP is developed. With the introduction of business concept & application strategy of inventory balance, and the implementation of inventory balance system based on ERP, a solid basis to improve the materials management level is founded.