The Research On Gold Cup Cables Corporation’s Improvement In Internal Control System Of Inventory Management

The wire and cable industry as the supporting industry of our country’s economicconstruction and infrastructure construction, has a great development in the recentyears. As the largest wire and cable manufacturer of Hunan province, the Gold CupCables has a huge expansion and a fast development since been listed i n2011.Because of the slowly building of the listing company’s internal control system, theinternal control system is not mature. The inventory backlog and the turnover are notideal, which has hindered the development of the enterprises. The purpose of thispaper is to study the Gold Cup Cables inventory internal control and make therecommendation, to reduce the inventory costs and improve inventory turnover. Theseadvices to consummate the system of the inventory internal control are for promotingthe sustainable development of the enterprise, improving the construction on theinternal control of inventories.Following the importance principle, and the analysis on the Gold Cup Cables’departments’ inventory statistics, the scope of the study on four de partments of theGold Cup Cables is narrowed, which have a large80%proportion of the inventory.The theoretical study on the internal control is used in this thesis. Combined with thecharacteristics of production for the wire and cable manufacturers, th is paper analyzesthe status of the Gold Cup Cables’ inventory internal control in the six segments thatare the purchasing, receiving, storage, delivery, checking, scarping of the inventory.Generally, the paper analyses the reasons of the weekly inventor y internal control, andfingers out the weekly such as the mere formality system, the short of the informationand communication, and also the weak internal monitoring in the whole Gold CupCables. Referring to the standardize of the internal control syste m, and for solving theproblems of the internal control in Gold Cup Cables’ inventory management, there aresome suggestions for the Gold Cup Cables in this paper which are strengtheningsecurity mechanism of the implementation in the internal control of i nventorymanagement.