THE IMPACT OF EFFECTIVE INVENTORY MANAGEMENT ON THE FINANCIAL STABILITY OF ENTERPRISES

Abstract

The article substantiates that inventories are a significant component of current assets and directly affect liquidity, solvency, profitability and financial stability. It is argued that excess inventories reduce asset turnover and require additional maintenance costs, and their shortage can lead to disruptions in production and loss of customers. The relationship between inventory management efficiency and financial stability is presented through cost optimization, increased turnover, increased liquidity, reduced risk of shortage, continuity of operations, stable cash flow. It is determined that to maintain financial balance, it is necessary to adhere to the optimal proportion between inventories, receivables and cash. A method for calculating the optimal order size is presented, with the help of which it is possible to find the point of minimization of total inventory costs. It is substantiated that the calculation of the economic size of the order shows differences in the scale of production, cost structure and efficiency of inventory management of enterprises. Calculations of the economic size of the order of LLC "Research and Mechanical Plant "Karpaty", PrJSC "Novokramatorsky Machine-Building Plant", JSC "Kharkiv Machine-Building Plant "Svitlo shakhtarya", LLC "Spetsbudmash" are provided. It is determined that an effective inventory management policy involves the use of scientifically based optimization methods that allow maintaining a balance between storage costs, ordering, transportation and shortage risks. The advantages and disadvantages of the main inventory optimization methods are determined. It is established that optimal inventory management involves the use of not a single universal method, but a complex combination of several approaches adapted to the specifics of the enterprise's activities. It is proposed to determine the dependence of the optimal order size on demand and costs by building a correlation-regression model, the results of calculations are presented. The impact of order size optimization on the efficiency of inventory management and financial indicators of enterprises is presented.