Research on the Risk and Feasibility of Zero Inventory Abstract: Is Zero Inventory Absolute? Or simply reduce the inventory to zero? But a way of thinking? It is an idea to gradually improve the level of inventory management and improve the flexibility of the overall supply chain. Isn't zero inventory the ultimate goal of enterprise management? Profit maximization and customer satisfaction are the ultimate goals of enterprises. Enterprises can't blindly pursue zero inventory? We should make our own inventory management strategy according to our own characteristics. Only the inventory management that best suits the enterprise's own characteristics? Only in this way can enterprises get the greatest development. Once the enterprise decides to implement zero inventory management? Therefore, a complete set of management system and risk prevention system must be formulated? Because zero inventory is more risky than traditional inventory. Keywords zero inventory? Feasibility study? Introduction to risk research Inventory management is an important part of enterprise management? In the new era economy? Facing the new competitive environment? Enterprise's inventory management means must be adjusted accordingly? To adapt to the fast pace of market development. And this time? As a new concept of enterprise inventory management, the concept of "zero inventory"? Is it that enterprises enhance their competitiveness? Effective ways to improve economic benefits. First, the concept of zero inventory Zero inventory is a special concept of inventory? Zero inventory does not mean no reserves, no reserves. The so-called zero inventory? Refers to materials (including raw materials, semi-finished products and finished products, etc. ) in one or more business links such as purchasing, production, sales and distribution? Does not exist in the form of warehouse storage. Are in a state of turnover. Second, the characteristics of zero inventory management? 1. Zero inventory can reduce the amount of working capital occupied by enterprises due to inventory materials? At the same time, speed up capital turnover. As we all know? Manufacturing enterprises generally need to purchase a large number of raw materials and purchased parts. These will occupy a large part of the enterprise's funds. This will bring heavy interest burden to the enterprise and increase the risk of the enterprise. Relevant data shows? Using zero inventory management can reduce the inventory ratio of enterprises by 45%-85% on average? The turnover rate of enterprise liquidity has been greatly improved. ? 2. Zero inventory avoids the risk of serious backlog of products produced by enterprises. Market demand often changes randomly? Once an enterprise's products are unsalable, it will cause a backlog of products? Take up a lot of corporate funds? At this time, adjust through reasonable inventory management? It will reduce the risk of enterprise inventory backlog. ? 3. Zero inventory also reduces the cost of enterprise inventory management. Inventory cost includes storage cost and management cost. After adopting zero inventory management? Due to the shrinking inventory of enterprises? The related storage costs will be greatly reduced? At the same time, the number of employees for inventory management will be reduced accordingly. Will these changes save costs for enterprises? Thereby increasing profits. ? 4. Zero inventory greatly improves the management efficiency. Is it impossible to achieve "zero inventory" in the true sense? But is the purpose of zero inventory management to reduce inventory? Find out the problems in enterprise inventory management and solve them one by one? In this sense? Zero inventory management is an advanced and efficient management concept. Third, the feasibility study of zero inventory? 1? Meet the needs of customers. Past? Enterprises generally ensure on-time delivery and unexpected orders by establishing finished goods inventory. Isn't the way to solve this problem in time to build inventory? But it greatly shortens the time from receiving orders to delivery? Specific measures include setting flexible time, shortening production preparation time, establishing manufacturing unit, improving product quality, and picking up goods directly from the factory instead of the finished product warehouse. ? Sun zhumao? Wen Guangwei? Yang Wangui fifth edition management accounting? Renmin University of China Press? 2008.？ In order to enhance the ability of enterprises to respond quickly to market demand on delivery time? Improve the market competitiveness of enterprises. ? 2? Discounts and price increases. Facing the inflation of the global economy? Many traditional enterprises try to win customers by holding stocks? Is there a discount? And prevent future price increases? Inventory cost at destination time. And the just-in-time system under the principle of "zero inventory" The solution is to sign long-term contracts with some suppliers as close as possible to the place of production. The advantage of this method is that the price and acceptable quality level are stipulated? Help to reduce the ordering cost. ? 3? Avoid downtime problems. Most shutdowns are caused by machine failures, defective materials and undelivered materials. The view in favor of just-in-time thinks that inventory does not really solve this problem? Just cover up and hide these problems. By reducing inventory to zero? The problem is exposed? In order to attract the attention of the administrator. (What about Sun? Wen Guangwei? Yang Wangui fifth edition management accounting? Renmin University of China Press? 2008.) Can it pass comprehensive preventive maintenance and comprehensive quality control? And establish a good relationship with suppliers, ensure the quality of supply, implement kanban system and other measures to solve the problem. Fourth, the risk study of zero inventory What are the constraints of zero inventory management? It is decided that the implementation of zero inventory will face greater risks. From a market point of view? Zero inventory management is suitable for a more stable environment? But even in a stable environment? Enterprises also dare not implement zero inventory management easily. The risks of zero inventory management mainly include the following aspects. 1. Product quality risk The whole process of a product from raw material procurement, product production, sales, logistics distribution to delivery to customers. The intermediate links are complicated? Which link has loopholes that will lead to product quality problems? Customer satisfaction is reduced. If the quality of raw materials is unqualified? Will it lead to the failure to complete the order on time and increase the rejection rate? Thereby increasing the inventory. The whole process of enterprise management is related to quality problems? Every link can not be ignored. Quality control is the foundation of enterprise's survival. 2. The most obvious feature of customer waiting for risk zero inventory is on-demand production. When it is in the peak sales season and customers require multiple product models, specifications and colors? It is very likely that there will be a shortage or there is no way to produce it in time. While the customer is waiting? You will choose the products of homogeneous competitors. In that case? Will seriously affect the competitiveness of enterprises in the same industry. 3. Long-term supplier partnership An important condition for zero inventory management of venture enterprises is to maintain a long-term cooperative relationship with suppliers. Incorporate the cooperative relationship with suppliers into the unified management scope? Make the supply of a large number of raw materials and semi-finished products timely and appropriate. Especially zero inventory management? It also requires suppliers to supply raw materials and spare parts in time. V. Ways to Realize Zero Inventory Is the production under zero inventory a level production? So what? It requires materials to be completely synchronized with the market from procurement, production to delivery? It is possible to reduce or even eliminate the inventory of raw materials, purchased parts, products in process and finished products. On the premise of determining that enterprises are suitable for adopting zero inventory strategy? Start with the following specific ways. But? Different enterprises can choose different ways to realize zero inventory according to their actual situation. One of the realization forms of zero inventory? Entrusted custody mode. Accept user entrustment? All materials owned by the user are stored and managed by the trustee? Let users no longer keep inventory? Even the insurance reserve inventory can no longer be maintained? So as to realize zero inventory. The trustee collects a certain amount of custody fee. What are the advantages of zero inventory? Does the trustee use its specialty? Can we achieve a higher level and lower cost inventory management? Users no longer set up libraries? At the same time, it reduces a lot of warehouse and inventory management transactions? Concentrate on production and operation. But? This zero inventory method is mainly realized through inventory transfer? It will not reduce the total inventory. What is the second form of zero inventory? Cooperative subcontracting mode. That is, American way and Japanese way. Mainly a form of industrial structure of manufacturing enterprises? This structure can supply products on time through the flexible production of several enterprises. Make the supply inventory of the main enterprise zero. At the same time, the centralized sales inventory of the main enterprise makes the sales inventory of some subcontracting services and sales enterprises zero. In many developed countries? Manufacturing enterprises are all pyramid structures composed of a large-scale main enterprise and hundreds of small subcontractors. The main enterprise is mainly responsible for the guidance of assembly and product market development? Subcontractors subcontract labor services, subcontract parts manufacturing, subcontract supply and subcontract sales. Like what? Enterprises that subcontract parts manufacturing? Can take various forms of production and inventory adjustment? To ensure the output rate of the main enterprise? Deliver the goods to the main enterprise according to the specified time? So that the main enterprise no longer has first-class inventory? Through quotas, on-demand supply, etc? Meet the sales of subcontractors with the centralized product inventory of the main enterprise? Enable subcontractors to achieve zero inventory. What is the third form of zero inventory? Rotation mode. Rotating mode is also called synchronous mode? Is it on the premise that the system is carefully designed? Fully coordinate the speed of each link? In this way, a form of zero inventory and zero reserve is fundamentally cancelled, even the state of temporary stagnation between stations. Is this method based on conveyor belt production? A larger extension to synchronize production with material supply? Through the distribution system supply, realize the form of zero inventory. What is the fourth form of zero inventory? On-time supply system. Complete rotation between production stations or between supply and production? This is not only a very difficult system engineering? And it needs a lot of investment. At the same time, some industries are not suitable for rotation. So what? It is better to widely adopt the punctual mode which is more flexible and easier to realize than the rotating mode. Isn't punctuality a wheel system similar to a conveyor belt? But rely on effective connection and planning to achieve coordination between stations and between supply and production? So as to realize zero inventory. What if the rotation mode mainly depends on hardware? Then JIT supply system relies heavily on software. What is the fifth form of zero inventory? Tap mode. This is a zero-deposit form that you can take water by unscrewing the tap of the tap water pipe without keeping your own inventory. This was first adopted by Sony Corporation of Japan. This way evolved over a certain period of time? Has it developed into an instant supply system? That is, users can make purchase requests at any time? Buy as much as you need. Suppliers assume the responsibility of immediate supply with their own inventory and effective supply system? Let users achieve zero inventory. Materials are suitable for this form of supply to achieve zero inventory? Mainly tools and standard parts. V. Conclusion The management of "zero inventory" is not simply to reduce the inventory to zero? But comprehensive technical management. So what? The implementation of zero inventory management requires enterprises to constantly explore and innovate in management, technology and production technology? Provide convenience for the inventory management of enterprises. In the supply chain network? Need to achieve confidence and good cooperation through all links? In order to effectively reduce the inventory in the entire supply chain. Theoretically? Is the existence of inventory a waste? Be realistic? The existence of inventory is inevitable? Appreciation is conducive to normal production and business activities. ? Notes? Discussion on zero inventory management of American and British enterprises [J]? Logistics procurement and research? Issue 45, 2009? So what? On the one hand, people should constantly improve their management level? Strive to finally achieve zero inventory? On the other hand? It is necessary and beneficial to keep a certain inventory properly. So while advocating zero inventory? Should be considered in combination with the actual situation? Looking at the problem from the starting point of improving the enterprise's own level? This is also a higher realm of enterprise financial management concept. refer to