Study On The Effect Of Working Capital Management Based On Supply Chain

Working Capital, also as known as working capital, the narrow sense refers to thesurplus between current assets and liabilities, is the circulating capital to maintaincorporations regular operation. In recent years, there are many cases in poor workingcapital management to bankruptcy. Now, it's an important problem to solve, studyingon the working capital, through strengthen working capital management to achieve thepurpose of enhance working management efficiency and company performance.In the dissertation, with the supply chain thought, reclassified the working capitalto purchase, manufacture and selling procedure working capital. Study on workingcapital management on corporate performance, the core corporation is manufactureenterprise, to the representative mechanical equipment instrument, the start points arepurchase, manufacture and selling procedures of supply chain, with the method ofmultiple linear regression study on the relationship to every procedure working capitaland corporate performance. The dissertation draw the conclusion: procurementprocedure working capital turnover negatively correlate with corporate performance,thus both of manufacture procedure and selling procedure working capital turnover arepositively. At last, proposing the suggestion of how to strengthen working capitalmanagement in each procedure based on supply chain, adapt to mechanical equipmentinstrument industry.Study on working capital management on corporate performance based on supplychain, not only can lead the company operator to recognize the purchase, manufactureand selling of the three procedure management which are different problems, but alsoafford more help to improve the overall management model, thus to raise theircomprehensive competition.