How to improve inventory turnover?

Question 1: How to improve the inventory turnover rate 1 and reduce the inventory?

Reduce inventory by maintaining a stable relationship with suppliers, transferring inventory to suppliers for storage, and purchasing in real time when necessary.

2. Increase sales and productivity.

Improve sales and productivity, so that the number of sales increases significantly, thereby improving inventory turnover.

3. Produce marketable products

Eliminate backward products and adjust the inventory structure in time according to market conditions.

4. Clean up unsalable products

For long-term unsalable goods stored in the warehouse, they can be sold at a discount and handled in time. Deteriorating and damaged inventory should be cleaned up in time.

Question 2: How to improve the inventory turnover rate of 1 Since inventory turnover rate = main business cost/(beginning inventory+ending inventory) /2, it can be seen from the formula that in order to improve inventory turnover rate, it is necessary to reduce monthly inventory, so that the purchasing department can have enough safe inventory days according to the monthly sales plan on the premise of ensuring normal sales. 2. Deal with the waste and defective products in the inventory in time, and don't overstock the inventory. 3. It can increase the frequency of commodity purchase and implement a small number of business strategies to reduce inventory. 4. Increase the sales cost appropriately.

Question 3: How to analyze the inventory turnover rate? I found it online. I hope it helps you.

Inventory turnover rate is the ratio of main business income to average inventory balance in a certain period of time.

Used to reflect the turnover of inventory.

Speed,

That is, whether the liquidity of inventory and the amount of inventory funds are reasonable,

While ensuring the continuity of production and operation,

Improve the efficiency of the use of funds,

Enhance the short-term solvency of enterprises,

Strengthen the inventory management of enterprises.

Low inventory turnover indicates that

Enterprise inventory management is poor, inventory liquidity is weak, inventory funds are unreasonable, and inventory utilization efficiency is low.

The quality of inventory turnover index reflects the level of enterprise inventory management.

It will affect enterprises.

Short-term solvency

,

It is an important content of the whole enterprise management. Generally speaking,

The faster the inventory turnover,

The lower the inventory occupancy level, the lower the flow.

The more energetic you are,

The faster inventory can be converted into cash or accounts receivable.

Therefore,

Increasing the inventory turnover rate can improve the enterprise's

Liquidity

Inventory Turnover Based on Cost (Times)

=

Operating cost/

Average inventory balance

Inventory turnover rate of revenue base (times)

=

Operating income

/

Average inventory balance

When calculating inventory turnover rate, whether to use "sales revenue" or "sales cost" as turnover amount depends on the score.

The purpose of the analysis.

If the purpose of analysis is to judge short-term solvency,

Sales revenue should be used.

If the purpose of the analysis

To evaluate the performance of inventory management, the cost of sales should be used.

The purpose of inventory turnover rate evaluation is to plan and predict the cash flow of the whole company from the financial point of view.

therefore

Evaluate the demand of the whole company and the operation level of the supply chain.

Such as manufacturers,

Its benefits are produced in the circular activities of capital → raw materials → products → sales → capital.

such as

If this cycle is also fast.

Even when the turnover is fast, the profit rate is high under the same amount of funds. Therefore, the turnover rate represents

The measure of enterprise benefit is called "inventory turnover rate"

If a manufacturing company is

2003

The cost of materials sold in the first quarter is

200

Ten thousand yuan,

The inventory value at the beginning of the quarter is

30

Ten thousand yuan, the inventory value at the end of the quarter is

50

Ten thousand yuan, then its inventory turnover rate is

200/[

(

30+50

)

/

2]=5

Time. Quite greatly

The average level of the enterprise.

40

Ten thousand cash flow in a quarter.

five

Time, earned.

five

Secondary profit. According to this calculation, if

The average cost of selling materials remains the same every quarter.

The average inventory at the end of each quarter is constant.

Then the annual inventory turnover rate of the enterprise

It became

200*4

/

40=20

Time. It is equivalent to the annual consumption of this enterprise.

40

Ten thousand cash income.

20

Secondary profit

First, the problem reflected by the low inventory turnover rate.

(A) unreasonable inventory reserves, capital occupation is too large

Due to the large inventory,

Resulting in high liquidity occupation,

So that the amount of liquidity occupied by the company's inventory reserves is significantly higher than that of the company.

Other companies will squeeze a lot of money invisibly, which will bring great difficulties to the liquidity turnover of enterprises.

(B) inventory management is not standardized

Inventory management is directly related to the capital occupation level and asset operation of enterprises.

Continuously improve the level of enterprise inventory management are

Help to improve the competitiveness of enterprises,

In the enterprise survival, development,

Profit and other aspects play an important role.

Missing parts in inventory management

Understand the inventory purchase plan,

That is, the point of purchase and the optimal inventory are vague,

There will be frequent purchases,

overstocked products

Too much, so the inventory cost and capital occupation will be higher.

(C) inventory internal control is not perfect

If the internal control of the enterprise is not perfect, there will be a lack of relevant approval procedures when collecting raw materials.

On a regular basis or

Irregular inventory, and failure to put forward timely treatment opinions on loss or scrapping will lead to inconsistency between accounts and facts.

The purchasing department can't know the company's inventory well and make the correct purchasing plan.

(D) the lack of cooperation and exchanges between various departments of the enterprise

Different departments of enterprises have different requirements for inventory.

Difficult to adjust,

There will often be certain conflicts.

in addition

Sometimes there is a lack of necessary communication between departments of enterprises in the world.

Causing information to be blocked,

Can't make a reasonable inventory in time,

Correct adjustment.

Second, measures to improve the company's inventory management

(A) to strengthen the financial accounting of enterprise inventory

Use the right,

Reasonable inventory management and financial accounting >>

Question 4: How to reduce inventory and improve inventory turnover rate? The syllabus of manufacturing inventory control technology and strategy is 12 class hours.

Integrating supply chain management and lean production practice

The basic objectives of this course are:

The so-called "inventory control" is to optimize the overall inventory structure of the supply chain, comprehensively control the sluggish inventory, realize the seamless transfer and orderly flow of inventory between upstream and downstream chains, and thus comprehensively enhance the partner loyalty and overall competitiveness of enterprises.

Basic questions to be answered in the course:

1. Why does supply chain and logistics management exist?

2. Why do you say "turn" means "earn" (money)?

3. Why does the bigger the warehouse, the faster the enterprise goes bankrupt?

4. Why should the (materials) always come, and all the (stocks) that should not come have come?

5. Why overproduction is a heinous crime?

6. Why do you say that the more you sell, the faster the enterprise will go bankrupt?

7. How to use product life cycle analysis to make a correct judgment on the master production plan?

8. Predictions are always wrong, but this does not rule out that you can make relatively correct judgments. The problem is how to make this judgment from the perspective of overall "demand and supply chain management".

9. How to use ERP correctly and effectively to establish a reasonable inventory strategy?

10. How to effectively monitor inventory and cash flow?

1 1. Why do you say "VMI" casually?

12. What are the key points of implementing CPFR?

13. How to design a reasonable organizational structure integrating supply chain management and inventory control?

Training objectives:

CEO, General Manager, Sales Vice President, Production Vice President, CFO, CIO, Chief Operating Officer, Supply Management Director, Logistics Director, Order Management Manager, PMC (Production and Material Planning) Manager, Production Manager, Purchasing Manager, Logistics Manager, Planning Manager, Accounting Cost Supervisor, Marketing Director, Customer Service, ERP Engineer, etc.

Training mode: 40% focused explanation, experience and lessons sharing +30% tools, model analysis and application +30% case discussion and problem solving-students bring their own daily supply chain management problems, on-site diagnosis and simulation exercises.

Training time:

2 days (12 hours)

Course outline:

Unit 1: goal setting: the basis of inventory control under the condition of integrated supply chain management.

1. What is the core purpose of supply chain and logistics management? The unity of opposites between OTD and ITO

2. Case discussion: Suppose you are the manager of a small restaurant. ...

3. Why is it "inventory control"-inventory control?

4. Why do you say that "transferring" is "earning" (money)?

5. Inventory turnover rate VS return on assets model-inventory, the invisible profit killer of enterprises.

6. Inventory turnover and cash turnover rate model -C2C: cash flow model.

Unit 2: Managing Affairs: Improving Inventory Turnover —— Integrating Inventory Control System under Supply Chain Condition

1, how to improve the inventory turnover rate? Financial Game Rules and Supply Chain Management

2. How to find the switch of inventory control? ISC-integrated supply chain management business process decomposition

3. The process determines the inventory-case discussion: the inventory confusion of the clothing industry

4. Inventory control point 1: inventory control and warehouse management.

5. Thematic discussion: IDA model for precision calculation of inventory data.

6. Phenomenon discussion: Why do you say that the bigger the warehouse, the faster the enterprise will fail?

7. Inventory Control Point 2: Inventory Control and Purchasing Plan (MRP)

8. Tool discussion: constrained planning and replanning control model-three curves of purchasing plan

9. Phenomenon discussion: Why do you always come when you should and when you shouldn't?

10, inventory control point 3: inventory control and procurement-supplier delivery elasticity analysis model

1 1. Inventory Control Point 4: Inventory Control and Procurement-Supplier Delivery Control

12, inventory control point 5: inventory control and production-why overproduction is a heinous crime?

13, case discussion: the tiger bites the sky and there is nowhere to escape?

14, Tool Discussion: MAPE and Three Curves of Predictive Machining

1......& gt& gt

Question 5: How does the increase of inventory turnover affect the cost? The improvement of inventory turnover rate can save purchasing funds. The unit inventory cost will be relatively reduced.

However, with the increase of inventory turnover rate, the purchase batch will increase, so it is necessary to recalculate the economic order quantity.

If the number of single purchases increases, it will reduce the inventory turnover rate.

Economic order quantity is to find the best balance point.

First, inventory costs include transportation costs, ordering costs, storage costs and out-of-stock costs in addition to acquisition costs. JIT increases the transportation cost by increasing the frequency of delivery, but effectively reduces the storage cost, such as the reduction of inventory level, which leads to the reduction of interest cost and opportunity cost. At the same time, it also greatly reduces the cost of warehouse leasing and the risk (cost) of inventory scrapping depreciation; As for the ordering cost, because many enterprises have adopted information processing methods such as ERP, the increase of ordering cost brought by the increase of ordering frequency is almost negligible. As for the out-of-stock cost, ordering in large quantities and small quantities does not necessarily guarantee that there is no shortage. On the contrary, increasing the frequency of ordering and improving the flexibility of supply will help reduce the risk of shortage. Therefore, improving the inventory turnover rate does not necessarily increase the holding cost of the whole inventory, especially for those materials and finished products with relatively high single value and relatively small volume and weight, such as electronics and optical fiber components, the benefits of improving the inventory turnover rate must be greater than the increase in inventory cost-this does not need to be calculated, although there is still a so-called two-rate inversion problem in theory.

Second, increasing the delivery frequency may not necessarily reduce the inventory, thus increasing the inventory turnover rate. It is naive and foolish to think that inventory can be reduced and inventory turnover rate can be improved simply by increasing delivery frequency and sacrificing transportation cost. Inventory control is a systematic project, which involves all aspects of demand and supply chain management, and cannot be decided by a single measure. Because you have many kinds of finished products and countless raw materials, how to plan the whole inventory structure systematically and reasonably according to the properties of different materials is the core problem of the whole inventory control. Moreover, in real life, due to various objective conditions, it is unrealistic to increase the frequency of delivery indefinitely.

The third question, for an enterprise, which is more important, the increase of transportation cost or the increase of cash flow. As we all know, cash flow is the blood of enterprise operation and survival. When the cash flow is broken, everything is over-the reduction of transportation costs can improve the profit rate of enterprises, but the existence of cash flow can ensure the long-term survival of enterprises. More importantly, the increase in profits brought by multi-cycle inventory may be far greater than the increase in transportation costs. The so-called small profits but quick turnover is reflected in the relationship between inventory turnover rate and inventory cost, which is also very appropriate-turning is earning, which is the truth.

Fourth: overcorrection must be overcorrected. While we are worried that the increase of inventory turnover rate may bring us higher inventory cost, we ignore a reality: how high is your inventory turnover rate? Can it be high (the increase of inventory cost is far greater than the benefit brought by the increase of inventory turnover rate)? This is the contradiction between theory (industry) and reality (business): in theory, there is a limit to the improvement of inventory turnover rate, but in fact you are still far from the so-called limit! Dell's inventory supply days are about 4-5 days, Lenovo's is 22-25 days. In this case, are you still worried about your inventory turnover? The same is true for mobile phones. The average annual inventory turnover rate of Nokia and MOTO should be above 20, while ours is below 5. What are you worried about? Correction must be overkill. You should try your best to raise the inventory turnover rate to a high enough level first.

Question 6: How to improve the inventory turnover rate and how to improve the sales of this company? Be sure to study the market and competitors, know yourself and know yourself, and win every battle.

In order to improve the inventory turnover rate, it is necessary to analyze the reasonable purchase batch and calculate the purchase cost. It is not that the less inventory, the better.

In any case, the extremes meet, so don't pursue inventory turnover unilaterally. Overall consideration, profit maximization is fundamental.

Question 7: How to reduce inventory and improve inventory turnover? First of all, you must find ways to strengthen the management level of the warehouse, and realize the goods tracking, data collection and big data analysis of the warehouse! Nowadays, if large and medium-sized warehouses want to manage warehouses well, they usually use Chinese code counting machines! Realize the barcode management, incoming scanning and outgoing scanning of the warehouse! How much is in stock? Where the goods are, you can see at a glance! Only strict data collection can carry out high-intensity data analysis, and with data, it will be easy to handle and realize efficient warehouse management!

Question 8: How to reduce inventory and improve inventory turnover rate 1. For example, the basic idea is: gradually adopt the measures of "fixing production by sales" to effectively control the inventory of finished products;

2. Then, according to the production plan, make the purchase plan and control the raw material inventory;

3. It can be seen that strengthening planning management is conducive to promoting the solution of the problems mentioned in the topic.