A high degree of competition in the market makes it necessary to carry out such activities as inventory planning. Determination of their optimal quantity allows to reduce costs, while leaving for the organization the possibility of making adjustments in production. Commodity stock represents the whole aggregate of products that is intended for sale and is in the sphere of circulation. It can be in the process of transportation, in the warehouse, as well as in the storage. The availability of the required volume of this category is an indispensable condition for ensuring the continuity of the entire production process. Commodity is created for specific purposes. The main ones are ensuring the continuity of production in order to fully satisfy the existing needs of the population, improving the quality of service and increasing the competitive advantages of the enterprise as a whole.
Functions that perform the stock of goods
The first of them is the provision of uninterrupted circulation and production, as a result of which there is a constant formation and consumption. The second important function is the satisfaction of the demand of the solvent population, since the commodity stock is in the form of supply. And the last, but not less important. Commodity stock is able to characterize the existing relationships between the volumes and structures of such categories as supply and demand.
Formation factors
First, stocks are formed at any stage of commodity movement, as there are seasonal fluctuations in the production process and in consumption itself. The second factor is the period of time necessary for transportation. Also important is the need for certain transformations to create a commercial product from the existing production. For this, sorting, packaging and other processes are used. The fourth factor is the distance between the direct supplier of the product and the trade organization. Among other things, one should not forget about the need to create reserves and insurance reserves, which would ensure the smooth functioning of this complex system. There are also many other factors that have a direct impact on the formation of stocks.
Types of commodity stocks
Here you can consider several classification characteristics.
By location
It is accepted to distinguish the commodity stock, which is in transit, at the enterprise or in the trade organization.
By appointment
This feature divides the object under consideration into stocks of early delivery (typical for remote areas, ensure the continuity of production); Current storage (the bulk belongs to them, they are necessary to meet the daily needs of the population); Seasonal accumulation (furs, vegetables, all kinds of fruits).
On indicators
Commodity stock is divided into absolute and relative.
In size
This feature allows us to distinguish the following types: average, maximum and minimum reserves.
Summarize
Commodity stock should be proportional to the turnover of the organization. This requires a competent management system. It should include rationing, operational accounting and appropriate control and regulation.