This study aimed to develop a framework of clustering and category model for manufacturers in Taiwan. First, we screen variables through factor analysis, and applied two phases clustering method and self-organizing map for cluster analysis. Then we used C5.0 to evaluate the better clustering method and produced the classification rules. Through these rules, the firms were divided into four groups: foreign trade and weaker liquidity type, domestic sales and good liquidity type, foreign trade and good liquidity type, and domestic sales and weaker liquidity type. Following we used Back Propagation Network to extract the key influence factors of Informed inventory time and Inventory Inaccuracy for each group, and then calulated the score of Informed inventory time, Inventory Inaccuracy, and their key influence factors for each group and category. Finally, this research summarized the above results and provided full path conversion strategies for firms which want to transfer to another group or category.