Study About Furniture Enterprise R’s Inventory Management

Inventory are semi-products or goods that are held by enterprises preparing for sale in normal business activities or materials and supplies used in the course of production and labor serving. Generally speaking, inventory in the enterprises possesses distinctive characteristics, such as wide rang of varieties, large quantities and tremendous liquidity. Nevertheless, our internal inventory control has been a weak link for most enterprises did not consider the internal inventory control as a crucial part of business management. As a result, abuse of power, kickbacks and a series of major management issues have been arisen in the course of inventory management. In fact, inventory, an important asset of enterprises, often accounts for a large proportion in the total current assets. The improvement and enhancement of inventory internal control can effectively facilitate the liquidity of funds, reducing the share capital in the inventory.Over 30 years of reform and openness, China’s furniture industry has evolved from traditional handicrafts workshops into mechanized production group of enterprises. Although many furniture companies have developed into group enterprises with the development of China’s economics, the main components of China’s furniture industry are still SMEs, among which most of them imitate the design of other companies and put less efforts in the management. What’s more, these SMEs can hardly build branding for their own products. With China’s economic transformation and intensified market competition, the sustainable development of SMEs will be challenged. Therefore, it is essential to enhance the inventory internal control in order to increase enterprises’ operational benefits.The current study collected data from China’s furniture industry. It mainly synthesized the investigation and enquiries of the industry, discussing the current issues that enterprises possess in inventory management. Based on the related theories and study results from the researches of domestic and foreign countries on inventory management and internal control, the current study aims to find out the potential problems that enterprises have on the inventory management, proposing methods for modifying the problems, reducing key risks of inventory, improving turnover rate, so that the efficiency of the internal management of enterprises continue to be enhanced, the economic efficiency can be ensured, thus, the comprehensive competitiveness will be improved.