Research On Inventory Management Of WE

Inventory is a very important current asset in a company. The value for inventory ishigh, the mobility is fast, the movement range is wide, and it is easy to devalue, destroyand lose. The management level for inventory directly affect cash flow and asset turnover,and finally affect profit, the profit is the chiefly aim for every company it is a significantway for enterprise control cost by strengthening management for inventory.In the past several years, the amount for inventory surged in a lot of enterprisesince the financial crisis and RMB revaluation. Such as iron and steel Enterprises, Realestate Company, Spinning Company and Sporting goods Company. Under thiscircumstance, it is possible for major company passing the crisis by adjusting output andsales promotion since they own abundant assets and cash. But most small business havebeen closed down due to the breakage of cash which caused by huge inventory. Cash flowis the king, it is more important than profit, the company which are profitable but no cashcan be found everywhere shall be bankrupt. Consequently, the research on managementfor inventory for small business is important.At present, The basic methods for management of inventory are ABC、JIT（just intime）、EOQ（Economic Order Quantity）.WE is a small company, this article research theinventory management of WE as a case. The management issues on inventory in WE arebe detected and analysed, and many suggetion are given against issues. At last theconclusion is WE should design overall management method which cross from thepurchase to sale and optimize inventory management according to her real stuation. Andreform the management philosophy, management model and control system.The inventorycost and cash occupation in WE can be reduced, finally its profit can be increase by10%by this way. It is helpful for WE survived in crisis and developed smoothly in future.