2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The high degree of competition in the market makes it necessary to carry out such activities as inventory planning. Determining the optimal number of them allows you to reduce costs, while leaving the organization the opportunity to make adjustments to production. Inventory is the totality of products that are intended for sale and are in circulation. It can be in the process of transportation, in a warehouse, as well as in storage. The presence of the required volume of this category is a prerequisite for ensuring the continuity of the entire production process. Inventory is created for specific purposes. The main ones are to ensure the continuity of production to fully meet the existing needs of the population, improve the quality of service and increase the competitive advantages of the enterprise as a whole.
Functions performed by inventory
The first of these is to ensure uninterrupted circulation and production, which results in its constant formation and consumption. The second important function is to meet the demand of the solvent population, since it is the commodity stockappears in the form of a proposal. And last but not least. Inventory is able to characterize the existing relationships between the volumes and structures of such categories as supply and demand.
Shaping factors
Firstly, stocks are formed at any stage of commodity distribution, as there are seasonal fluctuations in the production process and in consumption itself. The second factor is the period of time required for transportation. Also important is the need to carry out certain transformations to create a commercial product from the existing production. For this, sorting, packaging and other processes are used. The fourth factor is the distance between the direct supplier of products and the trade organization. Among other things, we should not forget about the need to create reserves and safety stocks that would ensure the uninterrupted functioning of this complex system. There are also many other factors that have a direct impact on the formation of stocks.
Types of inventory
Here you can consider several classification features.
According to location
It is customary to distinguish between inventory in transit, at an enterprise or in a trade organization.
As intended
This attribute divides the object under consideration into stocks of early delivery (typical for remote areas, ensure the continuity of production); current storage (the main share belongs to them; necessary formeet the daily needs of the population); seasonal accumulation (furs, vegetables, all kinds of fruits).
By indicators
Inventory is divided into absolute and relative.
By size
This feature allows you to select the following types: average, maximum and minimum stocks.
Summarize
Stock should be proportional to the organization's turnover. This requires a competent management system. It should include rationing, operational accounting and appropriate control and regulation.
Recommended:
Planning and economic department: its functions and tasks. Regulations on the planning and economic department
Planning and economic departments (hereinafter PEO) are created for the effective organization of the economy of organizations and enterprises. Although often the work of such departments is not clearly regulated. How should they be organized, what structure should they have and what functions should they perform?
Forecasting and planning finances. Financial planning methods. Financial planning in the enterprise
Finance planning combined with forecasting is the most important aspect of enterprise development. What are the specifics of the relevant areas of activity in Russian organizations?
Planning - what is it? Types and methods of planning
Planning is the process of developing and establishing by the management of an organization a set of qualitative and quantitative characteristics that determine the pace and trends of its development not only at the moment, but also in the long term
Act of inventory of emission sources. Order on the inventory and the composition of the inventory commission
Inventory of waste emissions into the atmosphere is a set of activities that are carried out by nature users, including systematization of data on pollutant emissions, identification of their location, determination of emission indicators. Read more about how this process goes and how the act of inventory of emission sources is filled out, read on
Inventory - what is it? Goals, methods and types of inventory
Inventory is an inventory of property designed to identify discrepancies between the actual number of valuables and the information contained in the company's internal documentation. The article lists the main varieties of such a check. The procedure for conducting an inventory is given
