IMPLICATIONS OF STOCK MANAGEMENT ON THE RESULTS OF ECONOMIC ENTITIES

Maria -Andreia Iliescu (Ristea), Marioara Avram and Nensi Xhani
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Maria -Andreia Iliescu (Ristea): University of Craiova Faculty of Economics and Business Administration
Marioara Avram: University of Craiova Faculty of Economics and Business Administration
Nensi Xhani: University of Craiova Faculty of Economics and Business Administration

Annals of University of Craiova - Economic Sciences Series, 2019, vol. 2, issue 47, 129-134

Abstract: The activity of stock management plays an important role in the management of economic entities due to the implications it has on the financial results recorded by them. The financial difficulties that economic entities are faced with may be caused by lack of inventory control, the low rate of return on invested capital being just a negative example of a result recorded on account of bad management. The optimization of stock management is a double-role action, the results of this action being reflected by the recording of an upward trend of both profitability and liquidity from one period to another. The most important objectives of stock management are: increasing the stocks speed of rotation, reducing the storage period and achieving a balance between the stocks level and the customers demand. Inventory management manages supply, financial and sales policies that sometimes generate conflicts between the financial compartment, whose main purpose is to minimize the total level of stocks, and the supply, sales and/ or marketing compartments, which aim to avoid as much as possible the stockouts.

Keywords: management; inventory management; economic entities; profitability; liquidity (search for similar items in EconPapers)
JEL-codes: M40 M41 (search for similar items in EconPapers)
Date: 2019
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