Research On Inventory Management Of Household Appliance Enterprises

The operation process in one company is actually the process of capital flow, the same as the blood of the company. As we can see the importance of capital management, it has becoming a hot issue that more and more companies pay attention to. Capital includes long-term capital and working capital, while inventory is the most important section in working capital. Chinese household appliance manufacturing industry has developed for over30years since the beginning of1980s. In the past three decades, this industry has developed at a tremendous speed and achieved notable achievements by importing foreign advanced technology and doing R&D on their own. Home appliance manufacturing was one of the relatively high degree of marketization in our country. However, based on the current situation, the occupation of inventory capital and slow turnover become a bottleneck problem that prevents many companies to go forward. Most of the companies would rather increase the occupation of inventory capital to secure the market needs, which contains many potential risks. There are more and more problems that our company will need to address, such as how to enhance inventory management, improve capital operation efficiency and solve the problems of inventory occupation and turnover.With the development of market economy, the continuous improvement of enterprise management level. More and more companies are paying attention to establishing a complete management system, which includes how to control capital occupation and increase turnover. Increasing capital turnover will not only decreases the capital occupation and cost, but also prevents loss for lowing the price, and most importantly improves the healthy development of financial management and provides a solid foundation for sustainable development.This passage has five chapters, and the main context is as follows:Chapter One, Introduction, to introduce the background, the aim and meaning of studying such subject;Chapter Two, Theory foundation and reference, to conclude the latest research results from home and abroad in inventory capital management, and specialize on the defining, modelling, advantages and disadvantages of ABC theory, EOQ theory, JIT theory and VMI theory;Chapter Three, Analyze on Inventory capital management on company A, first introduces the development history of household appliance company in our country, and the current situation in company A, then interprets the essence of management based on the data analysis of its recent years and on-site survey;Chapter Four, provides suggestions about inventory capital management on company A. Based on Chapter Three, the author quoted advanced management practice and theory, pointed the weakness in inventory capital management and provided reasonable suggestions; Chapter Five, research outcome and prospects, summarize the findings of this paper, and to prospect the inventory capital management on company A.The main contribution of this article is from capital management perspective through an analysis of the status of inventory management on company A, analyzes the existing problems and their causes on capital management, which raises the corresponding suggestions for improvement on existing problems and measures on a management level of enterprises to enhance their inventory capital have more practical significance, while other enterprises inventory capital management of the household appliance industry has a certain reference.