Analysis Of A Company's Inventory Internal Control On Its Operation Efficiency

As an important part of the internal management system,inventory Internal control not only directly affects the production costs, but also plays an important role in ensuring security of corporate assets and promoting the business goals realization.Establishment and effective implementation of the inventory internal control can reduce losses and wastes, prevent acts of favoritism and regulate employee workflow.However, the failure of inventory internal control generally exists in most of the production-oriented enterprises.Although most managers realize inventory management problems, they don't directly feel the huge impact of these problems in the course of business to create profits and pay more attention to this problem. Therefore,the study of inventory internal control for enterprises has far-reaching significance to improve their internal control system,establish risk prevention mechanism, improve operational efficiency and promote a virtuous cycle of enterprise development.Based on a systematic analysis of relevant literature,this paper analyzes the current situation of A company's inventory internal control in close connection with the reality from the perspective of inventory management.The research indicates some loopholes existing in current systems and presents major problems of A company's inventory internal control.Next,the article analyzes the microscopic mechanism of inventory internal control's influence on operation efficiency.This paper argues that the inventory management efficiency becomes lower when inventories can not be accurately tracked and recorded effectively in the production cyclewhich appears specifically in the failure control of inventory holdings and volatility.But when the inventory holdings can meet the enterprises level of development betterly,the inventory management efficiency becomes higher and the operational efficiency presents the optimal level,companies can create more value for the enterprise with a lower marginal cost of production.Furthermore,this paper connects inventory internal control's influence on operation efficiency with its operation to reach the goal of the research by production costs earnings analysis.Finally,this paper put forward improvements to solve the specific problems mentioned previously.