Research On The Internal Control Of The Inventory

Inventory control is the second profit source of enterprises, not only affects theproduction costs, but also takes up a lot of money. But few persons studied the articles andnot based on the actual situation to solve the problems. It is difficult to research on theinventory management because invalid controls are widespread. The internal control ofinventory will make the theory research to have more microcosmic foundation and bettermanagement research, strengthen the internal control, it is significant and far-reaching.The first chapter starts from the inventory control cause and content of research,introduces the importance of inventory control and summaries of the article. And then thesecond chapter introduces the concept and pricing of enterprise inventory control,objectives and principles, procedures, methods and so on. The objectives of inventoryinternal control, including as: ensure the enterprise inventory booking value to matcheswith the actual value, ensure the inventory to be safe, improve enterprise management andutilization efficiency and effect of management. Enterprise inventory internal controlprinciples including as: the realization and plan of goal is consistent, clear responsibilities,the principle of cost and benefit, the principle of separation of incompatible positions andso on. Inventory control procedures, including as the materials purchase, in and out,finished goods etc. The method of inventory control, including as: the technical methodand system method, such as the ABC classification, information management, the bestmodel of purchase, supply chain management, RFID technique, and the performanceassessment system, the stocktaking inventory. In the third chapter, through the analysisadvantage and disadvantage of the inventory control performance, especially on thereasons of invalid control, according to the objectives and principles of inventory controlto strengthen enterprise internal control.According to the above content, the enterprise must pay attention to control theinventory, base on their own characteristics, reduce inventory extrusion and funds, makethe enterprise value maximization.