What is active destocking, passive destocking? What is active replenishment and passive replenishmen

Taking the initiative to destock is that the company is not optimistic about the future.

business development, the company reduces inventory, including raw materials and finished products, and conserves cash for future development; Passive destocking is due to the company's cash flow.

The pressure to buy less raw materials or sell goods at a reduced price is the act of cash.

The initiative to replenish inventory is due to optimism about future business development, and the company increases inventory; Passive replenishment is the act of replenishing inventory as a last resort for a certain need.

Inventory can be divided into two categories:

1. Production inventory, that is, the inventory of grass-roots enterprises and institutions that directly consume materials, which is stored in order to ensure that the materials consumed by enterprises and institutions can be uninterrupted;

2. Circulating inventory, that is, the inventory of raw materials or finished products of production enterprises, the inventory of production departments and the inventory of material departments at all levels.

1. Single-cycle inventory and multi-cycle inventory.

Items can be divided into single-cycle inventory and multi-cycle inventory requirements based on the number of repetitions of item requirements. The so-called single-cycle demand refers to the occasional demand for a certain item, which occurs in a short period of time or the inventory time is unlikely to be long. Multi-cycle demand refers to the demand for a certain item over a long period of time, and its inventory demand is replenished.

2. Independent demand inventory and related demand inventory.

Independent demand inventory refers to the user's demand for a certain inventory item that is independent of other types of inventory, showing the independence of this inventory demand. A related need is a demand that is intrinsically related to other needs, according to which correlation.

A business can calculate how much it needs and when it needs it, and it's a demand.

3. Deterministic inventory and random inventory.

The so-called deterministic type means that the demand for the item is known and determined, and the lead time of the supplementary ** chain is fixed and has nothing to do with the order quantity, and when these two conditions are not met, the deterministic type is no longer applicable. The so-called random type means that at least one of the demand for items and the lead time of replenishing the ** chain is a random variable.

Encyclopedia - Inventory.

Encyclopedia - Destocking.

Regarding the inventory cycle, a complete inventory cycle includes four stages: active replenishment, passive replenishment, active destocking, and passive destocking. Among them, the active replenishment of inventory means that the enterprise has strong external demand and takes the initiative to increase inventory to cope with the increase in sales, which often occurs in the economic boom stage; Passive replenishment of inventory means that external demand is sluggish, enterprises fail to respond in time, and passively increase inventory due to the decline in sales, which often occurs in the recession stage of the economy; Taking the initiative to de-inventory means that the external demand of the enterprise is sluggish, and the initiative to reduce inventory often occurs in the depression stage of the economy; Passive destocking, strong external demand, enterprises fail to respond in time, due to the large increase in sales and passive reduction of inventory, often occur in the economic recovery stage.