The Research On Heng Li Corporation’s Improvement In Internal Control System Of Inventory Management

Machinery manufacturing industry is the traditional areas of manufacturingindustry.In recent years the manufacturing industry has been development steady andmade a great contribution to the development of our national economy. The subjectwe studied in this paper, is a typical mechanical manufacturing enterprises,as one ofthe earliest listed firms in Yueyang,from$1997in assets restructuring in2006to thecompany for the first time the suspension, and then to the recovery of the listed at theend of2013, along the way is not easy.As a typical machinery manufacturingenterprises，inventory is an important current asset,take up the large amounts of cashflow of the enterprise.Inventory management and utilization, is directly related toenterprise’s capital takes up level and asset operational efficiency.Under the impact ofthe market economy and face the current competition in the industry, Heng Li’sproblems of inventory exposed has become a key factor which hindered thedevelopment of the enterprise.Therefore, how to solve the poor quality of rawmaterials, products damaged large and finished goods in the backlog is theenterprise’s imminent task.Based on the inventory internal control related theoretical research on the basis ofthe analysis of enterprise inventory,the article classify the inventory in raw materials,work in progress, finished goods and merchandise Shipped four categories. At thesame time, according to the production characteristics of the machining industry, thecirculation of stock are studied, finding out the poor control of the four steps in theprocess of inventory flow: purchase and warehouse entry inspection,manufacturingand picking process,storage and management,issue of goods, and in-depth analysis ofthe constant current industry in inventory problems existing in the internal control,and the constant current industry as a whole analysis that the main reason for theproblem is system of risk management consciousness weak, system become a mereformality, information communication channel is too narrow and the internal controlactivities design flaws.Finally,with reference to the enterprise internal controlsystem,the author put forward the improvement suggestions which correspond to theexisting problems in inventory internal control presented in this paper and provideeffective implementation of the control programs.