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Implications Of Stock Management On The Results Of Economic Entities

Author

Listed:
  • 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)

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.

Suggested Citation

  • Maria -Andreia Iliescu (Ristea) & Marioara Avram & Nensi Xhani, 2019. "Implications Of Stock Management On The Results Of Economic Entities," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(47), pages 129-134, December.
  • Handle: RePEc:aio:aucsse:v:2:y:2019:i:47:p:129-134
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    More about this item

    Keywords

    management; inventory management; economic entities; profitability; liquidity;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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