Methodical Principles of Internal Control of Inventories in the Enterprise Operations Management System

Inna Herasymovych () and Nataliya Morozova-Herasymovych
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Inna Herasymovych: Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine
Nataliya Morozova-Herasymovych: 'Audit Firm 'Bina' Ltd., Kyiv, Ukraine

Oblik i finansi, 2016, issue 3, 114-121

Abstract: Effective formation of reserves at the enterprise acts as a buffer between suppliers of raw materials and materials and eliminates the need of continuous supplies, and reduces the costs on inventory holdings to the minimum. This article is devoted to justification of the need to use formation methods of production supplies' scope at domestic enterprises, which are widely used in countries with market economies, particularly in the USA, Britain and Japan. The problems of control over the formation of enterprise production supplies are outlined. It was revealed that the shortcoming of the current system of fixed orders is the formation of excessive supplies and costs or their lack. It was proved that the most effective control systems in terms of supplies stocking are the Anglo-American system 'Push' - 'according to the consumption' and the 'Pull' - 'just in time' and the last Japanese version - 'Kanban'. The advantage of the Japanese version is in minimization of purchase timing. Given the current economic conditions of management in Ukraine, it was proposed to use the traditional model 'Push', that developed during the twentieth century, with the improvement of the factors that ensure optimization of costs for inventory producing and holding.

Keywords: operating activities; costs; inventories; inventory management; control (search for similar items in EconPapers)
JEL-codes: L69 M41 (search for similar items in EconPapers)
Date: 2016
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