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) Purchasing Cost Purchasing cost is the cost consisting of the purchase price of the material, transportation charges, etc., that is, the value of the material inventory itself, which 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 cost The ordering cost refers to various expenses incurred by the company for organizing the purchase of goods, such as office expenses, travel expenses, postage, telephone and telegrams, etc. of the material supply personnel. 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 cost Storage cost refers to the expenses incurred by the printing company for holding inventory (such as paper), which mainly includes: interest accrued on the funds used for printing materials, insurance costs for printing materials, and damage and deterioration of materials such as printing paper. , warehousing costs, warehouse forklift trucking fees, warehouse storage personnel costs. 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 the accrued interest on printed materials funds, the damage and deterioration of materials such as printing paper, and the insurance costs of printed materials, etc., the costs associated with decision-making are directly proportional to the increase or decrease in the amount of inventory stock. To reduce storage costs, companies must reduce inventory purchases.
(4) Out-of-stock costs Out-of-stock costs refer to losses that cannot be met due to the normal need of production and operations due to exhaustion of printed materials (such as paper) or interruption of supply, mainly including loss of work stoppage due to interruption of printed materials supply. The amount of money owed and the loss of overtime, the loss of credit for delayed shipments resulting from the shortage of finished goods inventory, the loss of sales opportunities, and the fines due to delivery delays. If the company does not allow out-of-stock situations, the out-of-stock cost is zero, and there is no need to consider when making decisions; if the business allows out-of-stock, the out-of-stock costs are inversely related to the quantity of inventory, that is, it is related to the decision-making cost, and the enterprise must reduce the stock-out The cost will increase the amount of inventory. (To be continued)

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