Inventory management paper 1 inventory management of food enterprises
As a short-term investment of enterprises, inventory is too large and risky, which will not only affect the capital turnover of enterprises, but also affect the profitability of enterprises and even lead to financial crisis. Inventory accounts for a large proportion in the assets of food enterprises, which is directly related to the capital occupation level and asset operation efficiency of enterprises. This paper puts forward some problems existing in the inventory management of food enterprises, common methods of inventory management and suggestions on inventory management.
Keywords: enterprise inventory inventory management turnover rate
First, the significance of inventory management
In enterprise financial cost management, strengthening enterprise asset management and analyzing enterprise asset structure and management level have always been placed in an important management position. The inventory of food enterprises occupies a considerable proportion in the current assets of enterprises and is an important object of financial cost management of enterprises. Adequate inventory can ensure the smooth progress of production, but too much inventory takes up a lot of money, which makes enterprises bear interest expenses and affects the capital turnover speed of enterprises; At the same time, excessive inventory will increase various expenses related to inventory, such as purchase cost, storage cost and management cost, which will lead to an increase in operating costs and a decrease in profits. However, if reasonable inventory cannot be guaranteed, it may interrupt production, waste manpower and material resources, and have a great impact on sales. As the current assets of an enterprise, the management and utilization of inventory is directly related to the level of capital occupation, the efficiency of asset operation and even the survival and development of the enterprise.
Second, the method of inventory management
Enterprises must proceed from the whole, make overall plans and adopt different inventory management methods according to their own production characteristics and inventory types.
(A) ABC classification management of inventory
According to the importance of inventory, it is divided into three types of activity-based costing. Class A inventory accounts for 10%- 15% of the total inventory, and funds account for about 80% of the total inventory, and key management is implemented, such as large spare parts. Class B inventory is general inventory, with varieties accounting for 20%-30% of the total inventory and funds accounting for about 65,438+05% of the total inventory, and daily management is implemented, such as materials produced and consumed daily. Class C inventory accounts for 60%-65% of the total inventory, and funds account for about 5% of the total inventory. General management, such as office supplies and labor insurance supplies, can be purchased at any time. After classification, focus on key inventory and control general inventory.
(B) Economic order quantity model
Economic order quantity, using mathematical method to get the order quantity when the sum of storage cost and order cost is the lowest in a certain period. The typical inventory order size is to estimate the appropriate order size to minimize the cost. It can be concluded that only by maintaining an appropriate order size can the total cost be reduced.
EOQ=
Among them, A- annual inventory demand, Q- order quantity, P- variable cost of each order, and C- annual average storage variable cost of unit inventory.
(3) Maintain an appropriate inventory turnover rate.
Inventory turnover rate = main business cost/average inventory
The stock turnover index reflects the company's stock management level and affects the company's short-term solvency, which is an important content of the whole company management. Generally speaking, the faster the turnover rate of inventory, the lower the occupancy level of inventory, the stronger the liquidity, and the faster the inventory can be converted into cash or accounts receivable. Therefore, improving the inventory turnover rate can improve the liquidity of the company.
JIT production system
Just-in-time production mode is a production management mode that Japan studied and began to implement in 1950s and 1960s, and it is a criterion for effectively utilizing various resources and reducing costs. Its central idea is to find and eliminate all waste sources and any activities that do not produce added value in the production process. The control method and principle to realize this idea is to send the necessary materials to the necessary places in the right quantity and perfect quality at the necessary time.
Third, the common problems of inventory management in food enterprises
(A) the lack of regular inventory system
(two) the accounting records of goods income, delivery and balance are incomplete.
(c) Lack of communication between inventory managers and financial personnel, which leads to the lag of inventory information.
(4) The inventory supervisor lacks experience and can't identify bad inventory.
(5) disadvantages of storage.
Four. Suggestions on Inventory Management in Food Industry
(a) the implementation of source control, optimization of suppliers, to ensure that the quality of raw materials, excellent prices.
1. Food enterprises generally have a lot of raw materials and will face many suppliers, so it is necessary to optimize suppliers and clean up unqualified suppliers (manufacturers).
2. Take effective measures to ensure the stock supply, strengthen the contact with old customers at the same time, try our best to open up new sources of goods and provide guarantee for production.
3. Strengthen pre-procurement management, and establish and improve material price information files.
(2) Strengthen internal inventory management, improve the company's internal control system, reduce costs and improve the utilization efficiency of raw materials.
1. The company should establish a strict internal audit system. Through the establishment of post responsibility system, the responsibilities, rights and obligations of various departments and related personnel are clarified, all links of inventory business are standardized, and incompatible posts in inventory business are separated, restricted and supervised. Evaluate, motivate and constrain buyers.
2. Establish and improve the supplier access system. The company should establish a complete supplier file and establish a complete supplier access system according to the supplier's production capacity, qualification grade, reputation and price, so as to prevent the occurrence of bad inventory from the source.
3. Establish regular and irregular inventory counting system and implement inventory control.
(3) Establish an inventory management information system suitable for the company's own development.
For food enterprises, there are many kinds and large quantities of general inventory. In view of this situation, it is best to establish a special person to supervise various materials irregularly to ensure the timeliness and accuracy of inventory information. The company should establish the company's inventory management information system according to its own business process characteristics, realize the * * * sharing of inventory information among various departments within the company, as well as between the company and suppliers and distributors, and improve the efficiency of the company's inventory management.
(d) Establish a post system and fully participate in inventory management.
For food enterprises, there are many types and huge quantities of general inventory, so it is necessary to ensure that each type of inventory is managed by a special person to ensure the accuracy of inventory information; Strengthen communication and exchange between departments to ensure the timeliness of inventory information. Companies' purchasing, warehousing, finance, production, sales and other departments can participate in inventory management, and improve the efficiency of inventory management through the integration of internal resources.
1. Establish and improve the internal management system to ensure that the accounts, materials and cards are consistent.
2. Strengthen the internal management of the enterprise, reduce the inventory cost and improve the profit of the enterprise.
3. Strengthen the education of employees' sense of responsibility, so that every staff member can love their jobs and be dedicated.
References:
[1] Accounting Standards for Enterprises No.65438 +0- Inventory. Ministry of Finance, 2006.
[2] Xu Chunli, Qian Guiping. Financial management. Gezhi Publishing House.2010:179-183.
[3] Chen Siwen. Enterprise inventory accounting and inventory management skills. Economic science press.
[4] Wang Li. Analysis on enterprise inventory management. Journal of the Party School of Changchun Municipal Committee. 2006(4).
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