Risk Management Research Of Enterprise Inventory Based On Value-at-Risk

In the transition of economic system and structure of our country, and in the course of enterprise development and reform, the risk problem of enterprise is outstanding day by day too. Most enterprises are facing the problem of inventory risk. Too much inventory makes overstocking of products, not only makes the fund to be lain idle and occupies the ground, but also aggravates the interest's burden. After a long period of storage, goods will be out - of - date and devalued. How to lower the inventory risk is of great importance that every enterprise must focus on.The content of chapter one analyses the study of domestic and foreign literatures, and points out some deficiencies such as partially risk analysis, risk measure, risk control and so on. The second part analyses the meaning, characteristics and causes of the enterprises' inventory risk. Then it makes further analysis to the feasibility analysis of VaR being used in the framework of inventory, which based for risk measure of inventory. The third part sets up the VaR model system of inventory risk measure. The system sufficient considered risk preference of inventory manager. In the end, the paper gave an example of model applying. The fourth part sets up inventory risk management methods based on VaR. The fifth part is conclusion part, including summarizing the paper and extension.The main characteristic and innovation of this paper lies in four aspects. Firstly, the model system has the characteristic of expediently calculating, easily understanding, solving practical problems and easily collecting data. Secondly, having the idea of overall risk management, it considers the aspects of inventory quality, risk preference of manager, demand risk and so on. The study developed the deficiencies about which the current research only paid attention to modify the traditional inventory models and ignored inventory risk management. Thirdly, the risk measure model combined the VaR approach and the inventory management theory, on the one side, it developed the application area of the VaR approach in enterprise risk management, on the other side, it solved the deficiencies of inventory measure in the current inventory theory.The extensive research results presented above not only enrich the content of risk management theory but also widen the applied areas of the traditional inventory control models, and provide more sufficient scientific evidence for decision makers making inventory decision.