THEORETICAL STUDY OF THE INFLUENCE OF INVENTORY MANAGEMENT ON THE FINANCIAL CONDITION AND PERFORMANCE RESULTS OF A MANUFACTURING COMPANY
Keywords:inventory management, inventory turnover, financial condition, performance results
Manufacturing companies must responsibly manage their stocks in order to always ensure the appropriate level of stocks because the company's financial results and further operational efficiency depend only on the proper use of stocks. This theoretical study aims to reveal the impact of inventory management on the company's financial condition and performance results and to determine how researchers have evaluated this impact in their research. A theoretical analysis of inventory management systems is performed, their advantages and disadvantages are presented, and research by scientists on the impact of inventory management on the company's financial condition and performance results is examined. After the analysis of scientific research, it is concluded that the choice of inventory management system is determined by the nature of the company's activities. Therefore, a properly selected inventory management system in a manufacturing company can ensure the optimal level of inventory, and their efficient use, and lead to better company performance.