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KEYWORDS
Inventory,
Inventory management,
Method,
System
ABSTRACT
Inventory management has an important influence on operating performance of the enterprises. Inventory management includes the processes of purchase, acceptance, storage, custody, and sales, which involves both technical approaches, the management system and mechanism. This paper starts from the inventory management goals, theoretically analyzes the inventory management's current status and existing problems of our country's enterprises. The paper argues that there are problems, such as inappropriate methods, soundless system and mechanism etc., existing in the inventory management of our country's enterprises. In view of the above problems, this paper puts forward the corresponding countermeasures and suggestions.
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Inventory refers to the finished goods or commodities which are for the purpose of selling, enterprises hold in the normal course of business production, or goods are still in producting process for the selling purpose, or the materials consumed in the producting process and etc.. It reflects the enterprise's liquidity.
Inventory management is the management of the enterprise inventory, mainly including the information management of inventory and decision-making based on this information analysis, taking effective control of inventory management to achieve the ultimate goal, and raise economic benefits. Inventory management includes the processes of purchase, acceptance, storage, custody, and sales, which involves both technical approaches, and also the management system and mechanism. Inventory management technology methods include determining inventory purchase time, purchase quantity, maximum and minimum quantity of stock inventory and etc.
1 Objectives of Inventory Management
One reason for keeping stock is to insure the needs for production and sales, the other is price considerations, price of retail tends to be high, while a discount price will be given to bulk purchasing. However, redundant inventory takes up more funds, and will increase fees, such as storage fees, insurance, maintenance, management charges expenses, wages and so on. So, the objective of inventory management is to reach a balance between a variety of cost and inventory benefits.
2 The Current Status and Existing Problems of China's Enterprises Inventory Management
Facing the occurrence of global financial crisis in 2008, the Chinese government has promulgated a series of policy to expand inside needs and ensure the economy growth. Impacted by the national macroeconomic policies, the sales of some...