Under the conditions of market economy, if enterprises want to win competitive advantage and seize the market, they must strive to minimize the cost of the enterprise. How to adapt to the characteristics of today’s era and establish new ideas and methods for reducing costs are of great practical significance for effective price competition and improvement of enterprises’ competitiveness and economic benefits. General enterprises grasping cost management mainly refers to the management of finished products, but for printing and processing companies, because the fixed costs are only related to the amount of production costs, it is necessary to focus on strengthening the management of changes in the cost of Chinese and foreign purchases (ie, material inventory management) in order to achieve reductions. The cost of the product, the purpose of improving economic efficiency.
The production of any enterprise is inseparable from people, finances, and goods. The substances mentioned here mainly refer to the inventory of materials, and the so-called inventory refers to the materials reserved for the consumption or sale of enterprises in the course of production and operation, and is the main cost of the products of an enterprise. As a component, it accounts for a relatively large proportion of corporate liquid assets and generally accounts for 40% to 60% of product costs. The quality of inventory asset management has a great influence on the rise and fall of product costs, and even on product profitability and corporate finances. By analyzing the composition of the cost of the printed material inventory, using the function method to reasonably determine the inventory quantity, reduce the inventory level, increase the revenue, and achieve the best combination of function and cost, it is the basic goal of the printing company's material inventory management.
The function of inventory of materials in printing enterprises refers to the role of materials inventory in the production and operation of enterprises, mainly in the following aspects: First, the necessary raw materials (such as paper, film, etc.) can effectively prevent the suspension of waiting events. The occurrence of production will maintain the continuity of production. Second, the storage of necessary special materials will facilitate sales and enhance the ability of enterprises to adapt to changes in the market. Third, the maintenance of appropriate stocks will reduce the cost of purchases and facilitate the balanced production of the organization.
In order to make full use of the inherent function of materials inventory, enterprises must reserve certain inventory (such as paper, printing spare parts, etc.), but will also result in various expenses incurred, which is the cost of material inventory. Material inventory costs include the following:
(1) Purchase cost. The cost of procurement is the cost of the purchase price of the material and the cost of transportation, which is the value of the material inventory itself and is equal to the product of quantity and unit price. When the total purchase amount for a certain period is fixed, assuming that the price remains unchanged and there is no purchase quantity discount, the purchase cost of the material inventory will remain unchanged regardless of the number of purchases made by the company, and thus it is the unrelated cost of the decision.
(2) Ordering costs. Ordering cost refers to various expenses incurred by enterprises for organizing their purchases, such as office expenses, travel expenses, postage, telephone and telegrams, etc. Some of these costs have nothing to do with the number of orders, such as the basic expenses of the permanent procurement agency's rent, such fixed purchase costs are irrelevant costs of decision-making; the other part is related to the number of orders, such as travel, postage, telephone and telegraph fees, etc. The related costs, companies need to reduce ordering costs, you need to reduce the number of orders, when the total purchase of goods for a certain period of time under the conditions, it means that you need to increase the amount of inventory each purchase.
(3) Storage costs. Storage costs refer to expenses incurred by printing companies to hold inventory (such as paper), which mainly include: interest accrued on funds occupied by printed materials, insurance costs of printed materials, materials such as printing paper, damage and deterioration, storage costs, and warehouses Internal forklift transportation fees, warehouse storage personnel expenses, etc. The storage cost is also divided into fixed cost and variable cost. The fixed cost is independent of the quantity of inventory, such as the warehouse depreciation fee, the fixed monthly salary of the warehouse custodian, etc. This type of cost is the irrelevant cost of the decision. The variable cost is related to the inventory quantity. , such as accrued interest on printed materials funds, printing
Loss and deterioration of paper and other materials, insurance costs for printed materials, etc., are related to the decision-making costs, and the number of inventory storage
The increase or decrease in the amount is proportional to the change in relationship. To reduce storage costs, companies must reduce inventory purchases.
(4) Out-of-stock costs. Out-of-stock costs refer to the losses caused by the depletion of printed materials (such as paper) or the interruption of supply to meet the normal needs of production and operations, mainly including the loss of work stoppage caused by the interruption of the supply of printed materials, and overtime work to supplement the short-yield output of paper. Loss of credit, loss of credit for delayed shipments resulting from stock out of finished goods, loss of sales opportunities, penalties due to delivery delays, etc. If the company does not allow out-of-stock situations, the out-of-stock cost is zero and there is no need to make a decision
Concern; If the company allows out of stock, the out-of-stock costs will be inversely related to the inventory quantity, that is, the decision-related costs, companies want to reduce the shortage of cost, we must increase the amount of inventory.
Through the above analysis of the inventory cost of printed materials, we can see that if we increase the number of printed materials and reduce the number of printed materials, we can reduce the inventory storage costs, but the order cost and stock-out costs will increase; otherwise, the order cost and stock-out costs will decrease. , printing materials storage costs will increase. It can be seen that how to determine the optimal inventory quantity of printed materials, keep the total cost of the four items at the lowest level, and reduce the occupation of funds for printing materials inventory are the main problems in achieving the goal of printing material inventory management.
(to be continued)
The production of any enterprise is inseparable from people, finances, and goods. The substances mentioned here mainly refer to the inventory of materials, and the so-called inventory refers to the materials reserved for the consumption or sale of enterprises in the course of production and operation, and is the main cost of the products of an enterprise. As a component, it accounts for a relatively large proportion of corporate liquid assets and generally accounts for 40% to 60% of product costs. The quality of inventory asset management has a great influence on the rise and fall of product costs, and even on product profitability and corporate finances. By analyzing the composition of the cost of the printed material inventory, using the function method to reasonably determine the inventory quantity, reduce the inventory level, increase the revenue, and achieve the best combination of function and cost, it is the basic goal of the printing company's material inventory management.
The function of inventory of materials in printing enterprises refers to the role of materials inventory in the production and operation of enterprises, mainly in the following aspects: First, the necessary raw materials (such as paper, film, etc.) can effectively prevent the suspension of waiting events. The occurrence of production will maintain the continuity of production. Second, the storage of necessary special materials will facilitate sales and enhance the ability of enterprises to adapt to changes in the market. Third, the maintenance of appropriate stocks will reduce the cost of purchases and facilitate the balanced production of the organization.
In order to make full use of the inherent function of materials inventory, enterprises must reserve certain inventory (such as paper, printing spare parts, etc.), but will also result in various expenses incurred, which is the cost of material inventory. Material inventory costs include the following:
(1) Purchase cost. The cost of procurement is the cost of the purchase price of the material and the cost of transportation, which is the value of the material inventory itself and is equal to the product of quantity and unit price. When the total purchase amount for a certain period is fixed, assuming that the price remains unchanged and there is no purchase quantity discount, the purchase cost of the material inventory will remain unchanged regardless of the number of purchases made by the company, and thus it is the unrelated cost of the decision.
(2) Ordering costs. Ordering cost refers to various expenses incurred by enterprises for organizing their purchases, such as office expenses, travel expenses, postage, telephone and telegrams, etc. Some of these costs have nothing to do with the number of orders, such as the basic expenses of the permanent procurement agency's rent, such fixed purchase costs are irrelevant costs of decision-making; the other part is related to the number of orders, such as travel, postage, telephone and telegraph fees, etc. The related costs, companies need to reduce ordering costs, you need to reduce the number of orders, when the total purchase of goods for a certain period of time under the conditions, it means that you need to increase the amount of inventory each purchase.
(3) Storage costs. Storage costs refer to expenses incurred by printing companies to hold inventory (such as paper), which mainly include: interest accrued on funds occupied by printed materials, insurance costs of printed materials, materials such as printing paper, damage and deterioration, storage costs, and warehouses Internal forklift transportation fees, warehouse storage personnel expenses, etc. The storage cost is also divided into fixed cost and variable cost. The fixed cost is independent of the quantity of inventory, such as the warehouse depreciation fee, the fixed monthly salary of the warehouse custodian, etc. This type of cost is the irrelevant cost of the decision. The variable cost is related to the inventory quantity. , such as accrued interest on printed materials funds, printing
Loss and deterioration of paper and other materials, insurance costs for printed materials, etc., are related to the decision-making costs, and the number of inventory storage
The increase or decrease in the amount is proportional to the change in relationship. To reduce storage costs, companies must reduce inventory purchases.
(4) Out-of-stock costs. Out-of-stock costs refer to the losses caused by the depletion of printed materials (such as paper) or the interruption of supply to meet the normal needs of production and operations, mainly including the loss of work stoppage caused by the interruption of the supply of printed materials, and overtime work to supplement the short-yield output of paper. Loss of credit, loss of credit for delayed shipments resulting from stock out of finished goods, loss of sales opportunities, penalties due to delivery delays, etc. If the company does not allow out-of-stock situations, the out-of-stock cost is zero and there is no need to make a decision
Concern; If the company allows out of stock, the out-of-stock costs will be inversely related to the inventory quantity, that is, the decision-related costs, companies want to reduce the shortage of cost, we must increase the amount of inventory.
Through the above analysis of the inventory cost of printed materials, we can see that if we increase the number of printed materials and reduce the number of printed materials, we can reduce the inventory storage costs, but the order cost and stock-out costs will increase; otherwise, the order cost and stock-out costs will decrease. , printing materials storage costs will increase. It can be seen that how to determine the optimal inventory quantity of printed materials, keep the total cost of the four items at the lowest level, and reduce the occupation of funds for printing materials inventory are the main problems in achieving the goal of printing material inventory management.
(to be continued)
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