Study On HJ Group's Inventory Management

Of all the companies in the real economy,inventory plays an extremely important role for daily production,business activities and future development of enterprises.On the one hand,it is a balance between supply and demand,eases the contradiction between supply and demand.It is connected with the operational activities of each process of enterprises,and widely presents in all aspects of the supply of raw materials,production and sales.It plays an role for adjusting production load,improving product availability and reducing the Out of the frequency and logistics costs.In this respect,companies want more inventory to ensure the smooth development of production and sales.On the other hand,whether it is raw materials,semi-finished or finished goods,inventory will incur costs,such as increased warehouse space and inventory storage costs.It improves product cost,occupies our liquidity,results in sluggish capital.Not only increased the interest on the loan burden,it impacts time value and opportunity cost of capital.It results in a large number of idle corporate resources and swallows the profits of enterprises,so many companies do not want it too much.Therefore,how to optimize the system for inventory control and to seek an optimal inventory model,making inventory levels can meet the production needs,while timely,adequatly proposing order to avoid over inventory or out of inventory,reducing inventory footprint and overall inventory costs,accelerating cash flow is particularly critical.This article is report on inventory management of HJ Group.It researches deeply headquarters,subsidiaries and store inventory of HJ Group.First,it investigates the situation and status of inventory management operations,raises several issues inventory management of HJ Group,such as loopholes of inventory management on-site,lack of scientific and rational management model;inventory backlog caused by blind purchase,low efficiency of information transmission leading to the bullwhip effect;the value of inventory is affected by market fluctuations,lead to the true price of inventory can not be fairly reflected.After analysis of the status quo,the reason of the problem is that the inventory management system falls behind,the inventory internal control system is not perfect,the purchase decision is irrational,the internal performance evaluation is unreasonable,the inventory value measurement is affected by the cost method.Finally,the article summarizes the main conclusions and methods,puts forward some countermeasures for HJ Group to optimize inventory management,including using ABC classification management method,strengthening the internal control of inventory,more scientific purchasing decisions,developing a reasonable inventory management performance evaluation,improving the accuracy of inventory value accounting,actively dealing with the backlog of inventory goods,so as to improve inventory turns,bring tangible benefits for enterprises.HJ group is mainly engaged in sales of communications equipment and accessories,digital electronic products.It is currently the largest and most professional mobile phone chain groups.The results of this study will help improving the Group's inventory management decision-making,strengthening the Group's inventory management,improving utilization of funds,accelerating cash flowing,improving economic efficiency.It has important economic significance for HJ Group,and it has a certain reference value for peer companies to improve inventory management efficiency.