1. Inventory backlog takes up a lot of money;

2. There is a lot of inventory backlog, so it is difficult to arrange the production plan normally;

3. Affect the capital turnover of enterprises and drag down the payment of suppliers;

4. Cause sales difficulties. The more inventory, the greater the sales pressure;

The potential losses of enterprises may increase.

First, product inventory

(1) Products produced by this enterprise and inspected and put into storage during the reporting period.

(2) Although the inventory products have sales targets, they have not been delivered.

(3) Products processed by non-industrial enterprises and overseas orderers are not allocated.

(4) Off-balance-sheet products in stock.

(5) Products with quality problems found after warehousing but not returned to the warehouse.

The product inventory does not include the following parts

(1) For the products sold under the delivery system, the payment has been settled and the bill of lading has been issued, but the user has not taken it away.

(2) products kept by the agency.

Second, the inventory count

There are two ways to count inventory-manual and intelligent.

Manual: the enterprise will hire warehouse managers to count the inventory quantity in time and make statistics according to each product category;

Intelligentization: Enterprises adopt scientific and technological products, such as cashier system software with inventory counting function, to timely count and update inventory.

By controlling the surplus materials separately, we can prevent the backlog or shortage. There are two methods, one is based on actual figures, the other is based on days, and the two methods can be combined. In order to control inventory items separately, it is necessary to know the method of calculating inventory in days.

The indexes of this method are inventory cycle rate and inventory cycle. Divide the issue amount by the inventory amount, and the value is the inventory cycle rate, which we express in time. When the circulation rate is high, the inventory decreases and turns into cash faster.

The inventory cycle day in the inventory cycle is 365 days divided by the inventory cycle rate. This number of days refers to the number of days from the beginning of purchase to sales, so this number is inventory.

In short, to control inventory, it will be easier to understand with "how many days in inventory", that is, to express the current inventory in days. Therefore, the number of days is used to represent the small quantity and the maximum inventory, that is, the inventory benchmark of "how many days is the average daily delivery quantity" is set.