Enterprise inventory management of the shallow appropriately

[pick to] inventory as a very large proportion of assets, directly related to enterprise's capital takes up level and assets operation efficiency. Inventory management to the quality of the close relationship between the company and the interests of the company and the stakeholders, therefore, we must attach importance to the inventory management. In this paper a company in anhui province as an example, the inventory management of the present situation, the problems, the article analyzes the reasonable utilization of inventory, strengthening the inventory management measures, and the future development expounds some relevant opinions.

[key words] enterprise inventory; Inventory management; Turnover rate

Inventory is refers to the company in the normal production and business operation process for sales or production and reserves of the material, including materials, fuels, low-value in products, semi-finished products,, finished goods and commodities, etc. [1]. The cause of the goods for enterprise retained one hand is to ensure that production or sales business needs; On the other hand is from the consideration of price, for the price of goods zero often high, but the whole batch of buy is in the price concessions. However, too much inventory will not only occupy more funds, also can increase including storage charges, insurance premium, maintenance fee, management personnel salary inside each spending. Therefore, for the purpose of inventory management is to all kinds of costs and inventory benefits in a balance between, to achieve the best combination of both. Only through the proper execution of inventory management method to reduce the average enterprise capital takes up level, and improve the utilization rate of the inventory, can eventually improve the economic benefit of enterprise.

A, inventory management methods

(a) inventory ABC classification management. Is that according to the certain standards, will the company's inventory is divided into A, B and C 3 kinds, the points were the key administrative, classification don't varieties commonly by amount and control of the flexible inventory management methods.

A kind of inventory is characteristic of the amount is very big, but less number of varieties; A class B inventory amount in general, the number of varieties relatively more; C inventory number of varieties is various, but value is very small. As in the supermarket, high-grade PiHuo, jewelry, MingYan wines, household appliances, furniture, motorcycle, large fitness equipment, A number of varieties of goods are not much, but value but considerable amount; The popularization of clothing, shoes, bedding, cloth, stationery products such as appliance B type quantity is more, but the relative amount of A kind of commodity value are much smaller; As for all kinds of small articles of daily use, such as the needle, buttons, cosmetics, daily health supplies and other household products and other C products is very much the number, the unit value is very small. Generally speaking, three types of inventory amount roughly A proportion: B: C = 0.7, 0.2, 0.1, and the proportion of roughly A number of varieties: B: C = 0.1:0.2:0.7.

(2) the economic order quantity model (EOQ). The so-called EOQ, namely the Economic Order Quantity (Economic Order Quantity), it USES mathematics method in a certain period for storage costs and the Order of the lowest cost when the Order Quantity [2]. The typical inventory order scale is the estimate of the moderate scale of order, which realize minimize cost. From EOQ model in the derivation of we can draw a conclusion: only keep proper order size, can cause the total cost reduction. Therefore, do not advocate EOQ small batch order.

(3) keep proper inventory turnover. A company to keep higher profit ability, should attach great importance to the inventory management. In the current assets in inventory accounts for a bigger chunk of the inventory to the company's current ratio liquidity has important effect, accordingly, the analysis of the liquidity to the inventory is very important.

Inventory turnover = advocate business wu cost/average stock

Inventory turnover number = / average stock sales cost balance

Inventory turnover days = 360 / inventory turnover number

The stand or fall of inventory turnover index reflects the company inventory management level, it contributes to the short-term debt paying ability, the management of the company is an important content. Generally speaking, the faster the inventory, the lower the occupation of the inventory, liquidity, the better inventory into cash or accounts receivable and the faster. Therefore, improve inventory turnover can improve the company's cash ability.

(4) the production system (JIT) on time. On time mode of production is Japan in the 20 th century 50 s and 60 s research and began to carry out the production management way, is a kind of effective use of all kinds of resources, reduce the cost of the standards. The idea is to seek and to eliminate waste in the production process of origin and form all do not produce any additional value of the activity, realize the thought of the methods of control and principle is: will the necessary material, with right quantity and perfect quality, at the necessary time sent to the necessary site. Production system if real operation in just-in-time production way state, its stock is reduced to the minimum degree, therefore, JIT was in short into "zero inventory" management [3].

By this definition, we know that the core of the JIT is to pursue a no inventory production system, or to minimize inventory of production system, that is, eliminating all only increase cost, and not add value to the product of the process.

Second, inventory management application

This paper, from the analysis of a company in anhui inventory management situation, to discuss the inventory management problems of internal and external causes, and put forward the optimize inventory management strategy.

(a) the company inventory management present situation (see table)

From this trend of 3 years on average we can see the data, the company of the proportion of the total assets inventory in prior to March 2007 rose more quickly, and then declined slightly, again is slow rise trend, it shows that with the business development, inventory growth faster than the speed of growth in the assets of the company. To advocate business wu income and the ratio of the average stock said inventory turnover, can reveal the inventory converted ability, this ratio, the bigger the means that the income of the conversion for inventory time is shorter, the stronger ability to cash. And to advocate business wu cost and the ratio of the average stock said inventory turnover, can reflect the company's inventory management efficiency, this ratio means that the bigger the inventory turnover the faster, the company management inventory of the stronger ability. Two of the data in the table are significantly faster rising trend that companies pay more and more attention to the inventory control and management, and take the corresponding measures to improve. But 2007 years ago, three quarters of the inventory management effect is not ideal, each quarter data differences, especially for the first quarter of numerical down too fast, its inventory turnover situation is acceptable, explain the production and operation of enterprises and its sales appear problem, only the fourth quarter each index is better, explain the enterprise has signs of operation profit.

(2) the company inventory management are the cause of the problem analysis

1. Lead to inventory management of inefficient internal factors

(1) the company's business management to the recognition of the essence of the inventory defect, make the company's inventory of backlog. A large number of inventory will consume large amounts of cost, from this perspective, the inventory is also the company a "debt", the company should as far as possible in the lower inventory to meet the needs of production and sales.

(2) the functional departments and lack of effective communication between the company's inventory can't meet the demand of the market. The company for, manufacture and marketing departments are often one-sided pursuit the interests of their department, between the lack of effective information communication, lead to either the company's inventory reserves below the market demand to lose market opportunity, or cause inventory, increase the storage costs.

(3) the internal control system is not sound makes the supervision of the inventory efficiency is low. Internal company not make plans for the inventory management rules and regulations, even if established also because of the lack of strict examination and supervision, make not to run effectively. An internal waste of resources, but also increase the stock transfer process is the possibility of engages in malpractices for personal gain.

(4) management personnel of the professional quality of company is difficult to determine that the inventory of science. Management knowledge structure is unreasonable, if the inventory management in the process, used to simple with subjective experience, not use of scientific management method in qualitative and quantitative of inventory control.

(5) inventory management technology behind, causing the stock information can not be passed to the relevant department and the upper and the lower company. Inside the company set up with only statistical accounting for the purpose of small database system, serious when even mislead the purchasing and production company, causing the stock is out of stock or backlog.

(6) no will inventory management and logistics management, and the combination of the company to inventory management cost increase greatly. The company often in order to inventory management center for static, ignore the inventory management in essence is a dynamic process, only limited to inventory meet production or sales need a certain number of products or raw materials.

2. Lead to inventory management of inefficient company external factors

(1) national macroeconomic regulation and control policy changes. The people's bank cheque expanded loan interest rate of floating interval, the Banks with the execution of the interest rates rise, together with the expectations of rising prices, some companies in order to avoid the risk of interest rate risk and capital market, and a lot to hoard raw materials, formed a more inventory.

(2) prices continue to rise. In recent years, our country's productive price index (PPI), high prices rising pressure persist, the raw material supply increasingly nervous, energy, transportation, the price also is rising, the company in order to reduce risk out of stock, had to increase the safety stock inventory, and choose appropriate inventory valuation methods, avoid the risk of produce price changes.

(3) the market demand change speed up. The market demand change aggravate, also can increase the difficulty of the inventory management company, the company is often caused by sales forecast forbids, already was washed out by the related products and raw materials, spare parts has a lot of backlog.

(3) optimization company inventory management strategy

1. Raise sales forecast accuracy. Should do well in sales forecast, as far as possible improves the accuracy of prediction. Company sales forecast in the process can take the rolling forecast way, continuously according to the change of market environment for sales forecast revised, and let the dealer involved with the prediction process, play more access to markets, more dealers understand market advantages, in order to improve the accuracy of the prediction.

2. Classification of inventory management. The company stock variety, impossible to all inventory management to a full regardless of burglaries. Therefore, the company in the daily management of the inventory, can according to stock important degree, will it into A, B and C three categories. Among them, A kind of inventory quantity of all stock by 10% ~ 15%, accounting for 80% of the total amount of the amount of inventory around; A class B inventory quantity of all stock by 20% ~ 30%, the total amount of the total amount of the inventory around 15%; C inventory quantity of all stock by 60% ~ 65%, accounting for 5% of the total amount of the amount of inventory to the left. On this basis, the company should focus on doing A kind of inventory management, make effective inventory management strategy, strictly control the inventory of the quantity, improve the flow speed.

3. Optimize and improve the operation procedure of production of the company. In the optimization and improved in the process, the company needs to analysis the production of various processes in what is invalid operations process, which is able to improve product value added work flow, and then eliminate invalid process. In the simplified production process, the company should improve the production process, make the production line all the working flow of time to the agreement, realize the synchronization of production line production.

4. Improve the company's internal control system. First, the company to set up strict internal audit system. Through the establishment of the inventory of the business post responsibility system, clear departments and related personnel should bear the responsibility, right and obligation, regulate the business of inventory each link, ensure department and responsibility of the position clear, and ensure the stock the incompatibility of business from each post and restraining each other and supervision and put an end to commit fraud happens. Second, to establish and perfect the supplier access rules. The company shall establish a complete supplier files, according to the supplier's production capacity, the level of qualification, credit and price situation, the establishment of a complete supplier access system, from the source to stop the occurrence of bad inventory. Third, set up a regular and irregular inventory checking system and implement inventory control. The company deals with the inventory regularly or regular inventory of inventory, to determine whether conform to reality zhang, for the company's inventory management to provide reliable information.