Excess Capacity,Customer Concentration And Inventory Management

Inventory is an important part of enterprise working capital at the same time,it is also an important factor in business strategy,good inventory management is to maintain the level of production continued under the premise of minimizing the inventory related costs.Influence of the inventory management level by the production plan and sales strategy for the uncertainty of industrial consolidation effect may play a stable customer relationship on the one hand,reduce production uncertainty,reduce production costs,improve inventory management level.On the other hand,when the industry environment changes,close customer relationship may be due to large customers strong bargaining power and grab the interest motivation and enlarging the management risk,which eventually led to the decline in the level of inventory management.In this paper,from the perspective of risk,to explore the relationship between customer concentration and inventory management level under the environment of overcapacity.This paper hopes to empirical research and case,understand the relationship between excess capacity under customer concentration and inventory management level is changed,finally the degree of impact on manufacturing industry overcapacity in the manufacturing industry,guide pricing and production decisions.In this paper,we make use of empirical analysis and case study to test the relationship between the concentration of customers and the level of enterprise inventory management in China's two listed companies in Shanghai and Shenzhen stock markets in the period of 2007 ~2014,using A method.First select the manufacturing industry overcapacity situation is more serious in recent years,non-ferrous metals industry continued to be stressed in the national reform Yunlvgufen single case analysis.It is found that excess production environment can significantly reduce the level of inventory turnover.The company's annual report released from the case of longitudinal comprehensive analysis of inventory management level in different year shows what kind of change,analysis of overcapacity,big customer's distribution and sales contribution,as well as the annual inventory distribution,in order to find out the path of overcapacity corporate deposit change goods management level.Secondly,the Yunlvgufen and industry average index comparing research,overcapacity,different customer concentration influenced the inventory management level.Further,through the empirical test finds that overcapacity weaken the positive relationship between customer concentration and inventory management,that overcapacity environment will through the destruction of customer relationship,customer risk transfer behavior increases the business risk,resulting in inventory backlog,reducing the level of inventory management.Finally,the extent of the impact of excess capacity on each part of the inventory is analyzed by dividing the inventory into raw materials and further analyzing the product and finished product.It is found that the excess capacity has different effects on every part of the inventory segmentation,that is,the excess capacity affects every aspect of the production,which leads to the decline of inventory management.This is the first attempt from the perspective of customer relationship risk effect concentration and the level of inventory management,found that contrary to previous integration effect conclusion,enrich the customer concentration associated with the inventory management level of literature.For the first time on the industry environment how to affect the enterprise behavior,found that excess capacity will be influenced by the customer concentration affects the level of enterprise inventory management,expand the relevant literature of excess capacity,for the first time on the economic consequences of overcapacity.