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The Analysis of Efficiency of Managing Inventories in Trade in Serbia

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  • Radojko LUKIC

    () (University of Belgrade, Serbia)

Abstract

The efficient management of inventory performance in trade is very important. Ultimately, it is reflected on overall performance of trade. In order to measure efficiency of inventory management the gross margin return on inventory investment is used to a great extent. With the application of the DuPont system of analysis and statistical analysis, this paper researches the dynamics of gross margin return on inventory investment rate in trade in Serbia (on the example of five major trading companies) for the 2008-2012 period. With a view to thoroughly analyse the given issue, the dynamics of net income (net profit) return on inventory investments rate in trade in Serbia for the 2002-2012 period is also analysed. The obtained results of research show that the performance of inventories in trade in Serbia are at the lower level compared to other countries, especially developed market economies. So as to improve the performance of inventories in trade in Serbia it is, above all, necessary to increase the gross margin return on sales rate, net income return on sales rate, respectively. It can be done with the application of new concepts of cost management, Toyota business principles and modern technology.

Suggested Citation

  • Radojko LUKIC, 2015. "The Analysis of Efficiency of Managing Inventories in Trade in Serbia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(2), pages 222-238, May.
  • Handle: RePEc:rom:rmcimn:v:16:y:2015:i:2:p:222-238
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    File URL: http://rmci.ase.ro/no16vol2/07.pdf
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    References listed on IDEAS

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    1. Konan Chan & Louis K. C. Chan & Narasimhan Jegadeesh & Josef Lakonishok, 2006. "Earnings Quality and Stock Returns," The Journal of Business, University of Chicago Press, vol. 79(3), pages 1041-1082, May.
    2. Radojko LUKIC, 2013. "The Influence of Working Assets Efficiency Management on the Profitability of Trade in Serbia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(5), pages 731-745, December.
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    Cited by:

    1. repec:rom:bemann:v:6:y:2016:i:1:p:16-35 is not listed on IDEAS

    More about this item

    Keywords

    margin; return from sales; inventory turnover; cost efficiency; modern technology.;

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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