Inventories in the Context of Financial Management and the Level of Customer Service

Abstract

In all business areas, inventory management plays an important role. For this reason, the conceptual theoretical elements about the administration of working capital within the framework of financial administration are offered here, as a significant element to achieve greater efficiency in the business organization. Initially, a theoretical systematization about inventory management, inventory policies is presented; Varieties of criteria related to the inventory are revealed, in addition to the one assumed in this investigation. It also contains the study of different Models for the administration of inventories. Inventories are all those items or stocks used in production (raw material and work in progress), support activities (maintenance and repair supply) and customer service (finished products and spare parts). Inventory represents one of the most important investments of companies in relation to the rest of their assets, since they are essential for sales and essential for optimizing profits. In business practice, many managers make the mistake of not recognizing the importance of carrying out an efficient administration of the same. Therefore, the importance of using financial techniques for inventory management. In the present investigation, a documentary analysis methodology was used, whose purpose is to analyze inventory management techniques as a key element for the optimization of profits in companies. It is concluded that as it is possible to know and manage a greater number of techniques in inventory management, the probability of success, profit, operation, survival, growth and competitiveness in companies will increase; consequently, profits will be optimized.