Classification of retail inventories in the category management context

Abstract

The paper presents a logically structured classification of retail inventories in the context and for the purposes of category management. An analysis of the latest advances in research of the essence and classification of inventories in trade is made. It is proved that if a retailor applies a category management concept, it is necessary to develop a classification of inventories.

The essence of retail inventories is refined, their major characteristics identified.

Economic literature is reviewed and the most common approaches to classification of retail inventories are generalized (the major criteria of the classification of retail inventories are: functions performed (purpose), the objective, relationship with complex logistic functions, compliance with regulations, a degree of meeting the demand, liquidity level, nature of demand etc.). A retail inventory valuation system is presented (application fields and valuation types).

The classification of retail inventories is refined and supplemented, subject to location, as well as specificity of presenting respective information in accounting is described. It is proposed to introduce additional off-balance active account No. 010 "Goods on the way from the Supplier" into a Chart of asset, capital, obligation and business transaction accounts of enterprises and organizations. A structure for analytical calculations of the proposed account is offered.

A classification of retail inventories is developed for those applying the category management concept (classification criteria of inventories are proposed in respect of: major economic parameters; parameters of an inventory regulation system; physical properties of goods; parameters of consignments of incoming goods; financial aspects; an impact of inventories on retailor' performance).

The proposed classification of inventories will allow improving the retail management efficiency in case of using category management.