Effective inventory management is a significant tool for increasing net profit, positive net cash flow for an average and large enterprise that produces material goods. What happens if you think and do otherwise?
The history of this article is not thought out. My mobile and female voice rang at the other end of the line, saying that an enterprise producing important products for rescue services urgently needs to train one employee on the subject of stocks. The caller was called the HR Director of one of the industrial enterprises, considered one of the world leaders in her industry. Answering her questions about how “Business Consulting Igor Chugunov” can help in solving this task, and when I heard “well, then I will send an application for training,” I was interested in the question of the main reason that made me an enterprise interested in learning inventory management. Continue reading
“Application of the CVP interconnection accounting model beyond the acceptable and relevant range or over long time periods.”
The CVP interconnection accounting model is a convenient model for making decisions on enterprise management within the acceptable range of the “Volume of production (purchase of goods) driver and its sales” driver. Spreading the logic of the accounting model beyond the acceptable range without changing the revenue function from product sales and the enterprise total cost function is an error, since these functions are non-linear over a wider range of changes in driver values. Continue reading