Is it true that inventory management is the basis of theory?

In 1915, F.W. Harris of the United States published a model of economic order quantities, which pioneered the study of modern inventory theory. Prior to this, V. Pareto of Italy had proposed Pareto's law when studying the distribution of wealth in the world, and the ABC classification was used in inventory management. With the scientific management work, the theory of inventory management has been greatly developed, and many inventory models have been formed, which have been applied to enterprise management and have achieved remarkable results.

Classification of Inventory Management Models:

1) Different inventory models are used for different production and ** situations. According to the order method, it can be divided into 5 types of ordering models.

Periodic quantitative model: The quantity and time of the order are fixed.

Periodical non-quantitative model: The order time is fixed, and the quantity ordered depends on the difference between the actual stock quantity and the maximum stock level.

Quantitative irregular model: when the inventory level is below the order point, the order is replenished, and the order quantity is fixed.

Non-quantitative and irregular model: The order quantity and time are not fixed.

The above 4 models belong to the situation that the supply is sufficient and the order can be replenished according to the demand at any time.

Regular quantitative model of limited purchase rate: the supply is limited, and it needs to be purchased one after another.

2) Inventory management models can be divided into two categories: deterministic and probabilistic according to supply and demand. The main parameters of the deterministic model are known exactly; Some of the main parameters of probabilistic models are random.

3) According to the purpose of inventory management, it can be divided into two categories: economic and safe. The main purpose of the economic model is to save money and improve economic benefits; The main purpose of the safety model is to ensure the normal **, at the expense of increasing the amount of safety stock and the safety reserve period, so that the possibility of stockouts is minimized. Although there are many models of inventory management, it is the common principle of inventory management to obtain better economic results by comprehensively considering various contradictory factors.

This definition is incomplete.

Summary. Hello dear. Why the concept of inventory management in a broad sense is analyzed as follows:

Inventory", in the book "National Standard Logistics Terminology of the People's Republic of China", it is defined as follows: "Inventory is an item that is in a state of storage. "Inventories in a broad sense also include items that are in the state of manufacture, processing, and transportation.

In the production enterprise, for the needs of production, there is always a part of the materials in the state of production preparation, that is, in a temporary waiting state, these materials from the beginning of the waiting state, to leave the waiting state (before entering the production, or consumption, or the next circulation stage) until the stage, is the inventory of materials. This inventory. Therefore, inventory management adopts a broad concept.

Why adopt the concept of inventory management in a broad sense.

Hello dear. Why is the concept of inventory management in a broad sense used as follows: "inventory", in the book "National Standard Logistics Terminology of the People's Republic of China", it is defined as follows:

Inventory is an item that is in storage. "Inventories in a broad sense also include items that are in the state of manufacture, processing, and transportation. In the production enterprise, for the needs of production, there is always a part of the Xinzheng Brigade materials in the state of production preparation, that is, in a temporary waiting state, these materials from the beginning of the waiting state, to leave the waiting state (into production, stool or consumption, or the next circulation stage before the stage) until the stage, is the inventory of materials.

Clearer this inventory. Therefore, inventory management adopts a broad concept.

Thank you for your consultation, I hope the above information is helpful to you.

Do you have any questions?

The broad sense includes the narrow sense, which expresses the meaning expressed in the narrow sense, so the broad sense is used to summarize the whole.

Finally, I wish you good luck, all the best, all the best, and finally be able to give my brother a compliment, thank you.

The concept of inventory management is a comprehensive process that operationalizes the inventory policy of the manufacturer and the inventory policy of the value chain.

The reaction method, or pull inventory method, is to use customer demand to pull the distribution of products through distribution channels. Another management philosophy is the planning approach, which proactively schedules the transportation and distribution of products within the channel according to demand and product availability.

The third approach, or hybrid approach, combines the first two methods with logical reasoning to form an inventory management concept that responds to the product and market environment. A comprehensive inventory management strategy will detail policies and be used to determine where to place inventory, when to initiate replenishment shipments and how much inventory to distribute.

Inventory decisions include deciding when to order and how much to order. When the stock level drops to a certain level, an order must be placed, and the stock level at this time is called an or-der point or reorder point.

Problems and causes of current enterprise inventory management:

1.There is a lack of true records of the income, issuance and balance of inventory.

There are many human factors in the records of production costs and the collection and carry-over of materials and the use of Fei Nasun Qing, especially in the accounting of engineering projects. For example, if two job numbers A and B start work at the same time, the month-end accounting record shows that the material consumption of B is very little or even zero, while the material consumption of B is very small; Raw and auxiliary materials have been consumed without actually carrying forward the costs accordingly.

Raw and auxiliary materials have not been consumed, but have actually carried forward the cost; The purchased materials have been used and consumed, the purchase invoice has not arrived, and the provisional valuation and warehousing at the end of the period have not been provisionally estimated in accordance with the regulations, resulting in a decrease in inventory records at the end of the balance sheet and even a red letter balance.

2.The internal control system is not sound.

In the process of material procurement and product sales, the same person often completes the whole process of procurement and sales, payment and collection, warehousing and warehousing, etc., so that the procurement and sales work has no rules to follow, and it will also provide a hotbed for black-box operation, which increases the possibility of private fraud.

3.High liquidity tie-up.

Due to the large amount of inventory, resulting in a high amount of working capital, some enterprises have to account for more than 60% of the total working capital, which brings great difficulties to the turnover of working capital of enterprises.

4.The abnormal inventory reserve is crowded out in front of the hole.

In order to control the amount of working capital occupied, the inventory occupation is reduced as much as possible in the daily inventory management, and the purchase volume is reduced, which affects the reasonable inventory reserve required for normal production and operation.

5.Management is not in place.

Damaged to be scrapped and overstocked inventory reserves should be reported as a key issue in the annual liquidation and verification of assets, but they are only reported every year, without the instructions of the competent department at a higher level, and there is no treatment result, resulting in the amount of damaged and overstocked inventory reserves to be scrapped and overstocked like a snowball, and there is no fundamental solution to the problem.

Hello <>

Proper inventory management is very important for a company. It can help enterprises reduce inventory costs and avoid excessive capital occupation and storage costs. It can improve the capital turnover rate of enterprises and reduce the impact of inventory backlog on the business.

Reasonable inventory management can also help enterprises optimize the supply chain, improve production efficiency and product quality, so as to enhance the competitiveness and market position of enterprises. In order to achieve reasonable inventory management, enterprises need to formulate scientific inventory management systems and processes, and establish a sound information system and data analysis capabilities. Enterprises also need to pay attention to the training and management of employees, and improve the ability and awareness of training stools and their inventory management.

Proper inventory management is of great significance to enterprises, which can help enterprises reduce costs, improve efficiency and competitiveness, and achieve sustainable development. Have a great day<>

Answer]: A inventory refers to the finished products or commodities held by the enterprise in its daily activities, the products in the production process, and the materials and materials consumed in the production process or the provision of labor services. Including all kinds of materials, commodities, products, semi-finished products, finished products, packaging, low-value consumable or disgusting products.

The main purpose of inventory management is to control the inventory level and reduce the total inventory cost on the basis of giving full play to the inventory function.