THE ROLE OF INVENTORY MANAGEMENT AND ITS IMPACT ON INCREASING THE EFFICIENCY OF AGRICULTURAL ENTERPRISES

DOI: 10.31673/2415-8089.2024.042733

Abstract

The article is devoted to determining the role of inventory management and its impact on
increasing the efficiency of agricultural enterprises. The essence of the concept of " inventory" was
considered by various scientists and in accordance with the current legislation of Ukraine. Theclassification of inventory and the list of reasons for the need to create inventory at the enterprise are
given. When creating inventory, you can never forget about keeping a balance. On the one hand, they
can ensure uninterrupted production (that is, compensate for fluctuations in demand). But on the
other hand, these are resources that are not used for a certain moment and, in addition to their own
value, require additional costs for their maintenance. Inventory management is an extremely
important element of any agricultural enterprise, as it affects production efficiency, product turnover,
financial results and customer satisfaction. The main concepts of inventory management and their
impact on the efficiency of agricultural enterprises were studied. It has been established that there is
a traditional and a modern approach to inventory management. It has been proven that when
managing inventory, all possible expenses for them should be taken into account. The main types of
costs in inventory management are considered. It has been established that inefficient inventory
management can lead to losses. The following tools are used for inventory management: inventory
classification system, inventory rationing system, inventory accounting system, inventory control
system, inventory management system using information technologies. The current state and
development trends of agricultural enterprises, as well as the peculiarities of inventory management
in the agricultural sector, are given. Modern methods of inventory management, which should be
used to increase the efficiency of inventory management in agricultural enterprises, are
characterized, including the conditions of martial law. It was established that during the martial law,
the inventory management in the agricultural sector requires special approaches to ensure stability
and continued functioning of enterprises. In addition, effective inventory management makes it
possible to reduce the duration of the production and the entire operational cycle, reduce current
costs for their storage, release part of the financial funds from the current economic turnover,
reinvesting them in other assets.

Keywords: management, inventory, inventory management, efficiency, agricultural
enterprises, demand, supply, costs, profit.