Specific Measures To Control Inventory Cost

Yes Inventory cost Of control Specifically, we can start from the following aspects:

　 Correctly determine inventory materials:

For a general enterprise, there are dozens of products and tens of thousands of products, and in most cases, it is not necessary and impossible to prepare stock for all products. Therefore, the primary task of enterprises is to correctly determine inventory and non inventory materials.

Generally speaking, the enterprise's inventory management mode can be divided into pull type (reactive) and push type (plan), the former is based on demand (production or customer's order), and only when it is needed to produce or purchase inventory management mode, JIT and Kanban management system belong to this way. The products that are applied to this model usually have the following characteristics:

1. most of the products are customized for customers, or the standardization level of products is low.

2. the unit price of the product is relatively high. If this product is prepared for a large quantity of inventory, it will cause tremendous pressure on the capital flow of the enterprise.

3. the lead time of product production or procurement can meet the delivery requirements of customer orders. Under such circumstances, enterprises usually do not have to prepare stock.

4., the fluidity of products is slower.

　 Push inventory management model Based on forecasting and demand planning, enterprises prepare a certain amount of raw materials or finished products in advance to meet the delivery needs of production or customer orders at any time. The products that are applied to this model usually have the following characteristics:

1. the standardization degree of products is high and versatility is strong.

2. the unit price of the product is moderate.

3. the lead time of production or purchase of products can not meet the delivery requirements of customer orders.

4. sales of products are seasonal.

5. the fluidity of products is fast. Apart from some special industries and enterprises, most enterprises usually use the above two modes to manage different products. In this way, the delivery time of orders can be shortened, and the competitiveness of enterprises can be enhanced. At the same time, the inventory level of enterprises can be reduced and the flow of funds will be accelerated.

In the actual management work, in addition to determining the correct inventory management mode according to the product characteristics of the enterprise, it is more important that the inventory products can not be treated equally, but should be treated differently, classified management, which is usually referred to as the ABC classification. The ABC classification is to classify the stock in terms of the size of the Occupied Funds and the proportion of sales. The proportion of the material that accounts for a large proportion of the sales is classified as class A, with a slightly lower proportion being classified into B class. The lowest material is classified into C class. The purpose of this classification is to reduce the inventory level of enterprises and properly take care of the general materials by strictly controlling the key materials and improving the delivery level of the enterprises. By classifying different inventory materials, we can greatly reduce the overall inventory level of enterprises and reduce the cost of inventory.