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Study of Risk Control of Inventory Management in Small and Medium Textile Enterprises

Author: ChengJinLun
Tutor: WeiWenBin
School: Suzhou University
Course: Business management
Keywords: Small and Medium Textile Enterprises Inventory Management Risk Control
CLC: F274
Type: Master's thesis
Year: 2012
Downloads: 280
Quote: 0
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Abstract


Inventory is an essential floating assets in enterprise operation and it is the source of enterprise operating profit. Inventory management plays an important role in enterprise management activities, because it goes through the entire process from manufacture to marketing. However, inventory has the worst liquidity in floating assets from the view of either finance or internal control, and it also has numbers of potential risk factors in its characteristic. Textile industry has relative more kinds of inventory, so the management is relatively more difficult. Additionally, small and medium textile enterprises are influenced by traditional concepts and practical conditions, and the inventory management level is generally low, which make textile industry has potential risks in many procedures. Therefore, how to improve the risk control abilities of inventory management in small and medium textile enterprises has become a popular study topic in both textile enterprise and other small and medium enterprise management academic area. According to the characteristic of inventory management in small and medium textile enterprise, this article discusses primary risk factors and related countermeasures.The article applies related knowledge of enterprise financial management and internal control management, based on reviewing previous research, to present relevant assumptions. Investigations are carried out in some small and medium textile enterprises in Suzhou district where200hard copies and50soft copies of survey questionnaire are done. Followed by180hard copies and40soft copies of recovered questionnaire, the effective rate of hard copy recovery reaches90%and the effective rate of soft copy recovery reaches80%. The total effective rate of recovery reaches88%. By statistics analyzing the questionnaire data and using empirical research methods to analyze the impact factors on the risk control abilities of inventory management, some valuable conclusions are made which could be the theory foundation for the risk control of inventory management in small and medium textile enterprises.It’s concluded that in the range of standard market scale, inventory category and turnover state in small and medium textile enterprises, inventory price management level and risk control degree of inventory management, inventory internal control level and risk control degree of inventory management, inventory quantity control level and risk control degree of inventory management, information management level and risk control degree of inventory management are all positively correlated. This article provides some specific measures and advice on risk control, according to the research results.

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