INVENTORY MANAGEMENT POLICY IN THE TRADE
Keywords:
inventories, turnover, financial cycle, stock turnover period, inventory management, financial cycle durationAbstract
The article is devoted to the actual question about the formation of a policy of management of inventories by the functional of the optimum value of duration of the financial cycle of a trading company.
The analysis of recent studies and publications indicates that, in the presence of many versatile scientific works on the management of inventories, the problem of the influence of the duration of a financial cycle on the formation of inventories at trading companies remains unsolved.
The goal of this work is to find some methodical approaches to the development of a policy of management of inventories of a trading company in the context of the formation of its financial cycle.
In the process of studies, we have used the general scientific methods of analysis, synthesis, modeling, system approach, comparison, and generalization. The information base are current legislative and normative-legal acts, publications of the State service of statistics of Ukraine, data of the own scientific studies, and results obtained by leading scientists, who dealt with questions of the management of inventories.
Possibilities of the formation of inventories at a trading company on the basis of the targeted values of duration of a financial cycle are analyzed, peculiarities of the management of inventories with the principal aim to attain their equilibrium level are presented, and some methodical recommendations on an increase in the efficiency of the management of inventories with the use of the mechanism of optimization of the management parameters in the “expenditures – result” system with such target function as the minimization of the duration of a financial cycle are proposed.
We have clarified that the duration of a financial cycle affects the policy of management of inventories of a trading company. In particular, the application of the proposed methodical approaches to the practice of the financial management allows one to determine the optimum volume of inventories by the criteria of correspondence to the real demand of buyers and minimization of expenditures on their formation.
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