Science. Business. Society.
Vol. 9 (2024), Issue 1, pg(s) 11-13

BUSINESS

Stock management strategy

  • 1 Dimitar A. Tsenov Academy of Economics, Svishov, Bulgaria

Abstract

The set of methods and rules in the process of providing raw materials can be considered a strategy for stock management. Each strategy is associated with specific and expected costs. Still, optimally, we can call that strategy that, under the given conditions, leads to minimal expenses related to the material provision of the studied system. Part of the stock management process is establishing the timing of the deliveries, the necessary volumes and the distribution of the incoming lots to the various warehouses and units. The search for optimal strategies is subject to the theory of optimal stock management. This makes it possible to release significant funds frozen in the form of stocks, which leads to increased efficiency of the material resources used. The optimal inventory management strategy and flexibility also lead to improved production processes and reduced and excluded possible interruptions caused by lack or shortage of materials. The stock management process influences the planning, forecasting, and fulfilment of production needs and orders.
The elements of the business system described so far, in which raw materials, materials and their stocks have a significant impact, show the importance of the stock management strategy of each economic unit. That the chosen and functioning system is optimal is a substantial part of the overall success in any enterprise or other form of business process implementation.

Keywords

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