Inventory refers to materials temporarily idle for future economic activities of enterprises; Inventory has its advantages and disadvantages.

1, advantages:

(1) Prevent shortage

② Shorten the order delivery cycle.

③ Stability.

(4) Allocate the order cost.

⑤ Prevent interruption.

2. Disadvantages:

Occupy a lot of money

② Inventory cost incurred.

③ It brings management problems.

Second, effective inventory management:

Effective inventory management should correctly grasp several principles:

1, FIFO principle

2, the principle of locking position

3, the principle of special materials.

4.ABC management principles

5. The principle of "six noes"

6, "five no hair" principle

7. One-time outbound principle

8. Access control principles