What Is a Treasury Stock Method?

Inventory is the goods actually stored in the warehouse. It can be divided into two categories: one is production inventory, that is, the inventory materials of grass-roots enterprises and institutions that directly consume materials, which are stored to ensure the uninterrupted supply of materials consumed by enterprises and institutions; and the other is circulating inventory , That is, the raw material or finished product inventory of the manufacturing enterprise, the inventory of the production department and the inventory of the material department at all levels. In addition, there are special forms of state reserves, which are mainly used to ensure the timely and complete supply or sale of supplies to the supply and marketing inventory of grassroots enterprises and institutions.

[kù cún]

in stock

kù cún

[English] inventory

[Interpretation] (movement) refers to the cash or materials existing in the warehouse, but the inventory should be brand new unopened and unused goods.

[Composition] Subject-predicate: library | store

[Example] ~ There are many goods. (Attributive)

Inventory is sometimes translated as "storage" or "reserve". It is a resource that is temporarily idle to meet future needs. Resources such as people, property, materials and information have inventory problems.

For the material operators under the national material authority, the inventory mainly includes large quantities of materials purchased according to plan, materials to be allocated for which specific users and uses have not been scheduled in the annual plan, materials that must be purchased to play the role of "reservoir", and Turnover inventory required for normal supply. ^[1]

Turnover inventory: inventory held to meet daily production and operation needs. The size of the turnover inventory is directly related to the purchase volume. In order to reduce

With the application of Internet, ERP, e-commerce and other information technologies in enterprises, the competition model of enterprises has undergone a fundamental change. In the 21st century, market competition has evolved from competition between individual enterprises

(1) shorten the order

Inventory is a costly investment, both for manufacturing companies and

Costs that increase as inventory increases

(1) Cost of funds. Inventory resources are valuable in themselves and take up funds. These funds could have been used for other activities to create new value. Inventory left this part of the funds idle and caused a loss of opportunity.

(2) Storage space costs. To maintain inventory, you must build warehouses and equip equipment, as well as heating, lighting, repair, and storage expenses. This is the cost of maintaining storage space.

(3) Deterioration and obsolescence. During the idle process, the items will deteriorate and stale, such as metal rust, obsolete medicines, paint fading, and fresh goods deterioration.

(4) Taxes and insurance

Costs that decrease as inventory increases

(1) Order fee. The order fee is related to the order issuing and receiving activities, including the evaluation of the asking price, negotiation, preparation of orders, communication, and receipt inspection, etc. It is generally related to the number of orders and has nothing to do with the number of orders.

(2) Setup cost. Processing parts generally need to prepare drawings, processes and tools, need to adjust the machine tool, install process equipment. The cost of these activities. If you spend one adjustment preparation fee and process more parts, the adjustment preparation fee allocated to each part will be less. But expanding processing batches will increase inventory.

(3) Purchase and processing fees. Large quantities purchased or processed may have price discounts.

(4) Production management fees. Large processing batches will reduce the workload of making arrangements for each batch of workpieces.

(5) Out of stock loss fee. Larger batches are less likely to be out of stock, and less out of stock.

Total cost

Calculating the total inventory cost is generally based on the year

As a manufacturing company, inventory seems to be a natural thing. The main causes of inventory are the following:

1. To shorten delivery time

2. Speculative purchase

3 avoid risk

4 Reduce the gap between seasonal changes and peak production

5. Other reasons include lack of marketing management, inappropriate production management and processes, and unstable supply sources.

But in terms of overall operation, high inventory investment means high

Vigorously develop the group buying business

On holidays, products such as thermal underwear, sweaters, down jackets, suits, children's clothing, etc., are suitable for the development of group buying business. Many large clothing distributors have certain personal connections in the local area, and can make full use of these relationships to carry out group purchase business. Because clothing is a daily necessities, there must be a group purchase market. And group buying can generate bulk sales, which is very helpful for cleaning up inventory.

Finding special sales channels

When the existing sales channels are not enough to digest the inventory, we can consider whether there are other forms of sales channels for the target consumer groups. There have been some companies that specialize in acquiring inventory products and set up specialized stores to sell inventory products. Distributors may also consider cooperating with these companies.

Use inventory to exchange ads

There is no doubt that investment in advertising can definitely bring some benefits to dealers. Moreover, dealers often get certain support from manufacturers when they advertise. Even many media advertisements can actually be used to compensate for goods during the operation. In order to gain a price advantage, many advertising companies often buy out some media time and then change hands. But at some time when they did not change hands in time, the advertising companies often agreed to use some or all of the products to cover the advertising costs in order to recover the costs, and the advertising companies could obtain the products as public relations gifts or company welfare products to issue to employees. Not only advertising companies, some media are also willing to exchange some extra advertising time for practical products

Independent marketing store inventory

The above is more suitable for large stores to handle inventory, but some methods are not applicable for individual stores. Let's talk about the handling methods of counters and brand independent marketing stores.

Low-price retail

Low-price retail and promotions can bring a part of their customer base. Although the sales are not large, good sales methods can still drive a lot of buying desires.

buy one get one free

Many branded apparel will buy one get one free, or add a part of the price to give a product when the new listing, this kind of activity can also be very popular, if it is a brand counter can still attract a few budget-conscious friends. Right now many budget-conscious cuties are optimistic about the business opportunities of this event.

Online store sales

It's also a good idea to open an online store that specializes in seasonal brand clothing. Not only bring popularity to themselves, do shop promotion, but also sell their own products. So opening an online shop is also a very good way to deal with it.