The perseverance of Pacioli's goods inventory accounting system

This paper details sources of the 'undoubtedly strange' (Yamey, 1994a, p.119) system of goods inventory records described in Pacioli’s 1494 bookkeeping treatise and traces the longevity and widespread use of this early perpetual inventory recording (EPIR) system in English language texts. By doing so and contrasting this system with the bookkeeping treatment of modern texts, it is shown that the EPIR system persisted as the dominant form of goods inventory accounting for between 400 and 500 years and that the reasons for its demise are worthy of further consideration and research

No Going Back: The Interactions Between Processed Inventories and Trade Credit

Our paper focuses on testing the advantages in controlling the buyer and salvaging goods supplied where we have information on the nature of the transacted good and information on the inventory of buyers and sellers. We find transactions in specialized goods tend to be conducted more often using trade credit, but willingness to extend trade credit also depends on the ability of the firm to resell goods when demand is uncertain and on inventory costs. The advantages in salvage of goods is also limited by the extent to which goods have been processed by the receiving firm. These findings are derived from 82,000 French firms in four sectors over the period 1999-2007. Our results confirm the findings of the existing literature based on US and UK data, while also giving more support to the inventory transactions cost motive for firms with specialized goods.Trade credit, Inventories

Why Do Real and Nominal Inventory-Sales Ratios Have Different Trends

This note explains the diverging trends between real and nominal aggregate inventory-sales ratios. The combined effect of two features of the data explains the divergence. First, while aggregate sales include both goods and services, inventories include only goods. Second, there has been a strong secular decrease in the relative price of goods. The combination of these two factors causes the real and nominal aggregate inventory-sales ratios to have different trends.

Inventories and the business cycle: an equilibrium analysis of (S,s) policies

We develop an equilibrium business cycle model where producers of final goods pursue generalized (S,s) inventory policies with respect to intermediate goods due to nonconvex factor adjustment costs. When calibrated to reproduce the average inventory-to-sales ratio in postwar U.S. data, our model explains over half of the cyclical variability of inventory investment. Moreover, inventory accumulation is strongly procyclical, and production is more volatile than sales, as in the data. ; The comovement between inventory investment and final sales is often interpreted as evidence that inventories amplify aggregate fluctuations. In contrast, our model economy exhibits a business cycle similar to that of a comparable benchmark without inventories, though we do observe somewhat higher variability in employment, and lower variability in consumption and investment. Thus, our equilibrium analysis reveals that the presence of inventories does not substantially raise the cyclical variability of production, because it dampens movements in final sales.Business cycles - Econometric models ; Inventories ; Equilibrium (Economics)

Rancang Bangun Aplikasi Pencatatan Barang Masuk dan Barang Keluar pada Gudang PT Telkom Akses Surabaya

System for recording incoming goods, transfer of goods, and re-filing order goods inventory at the warehouse PT. Telkom Akses Surabaya still using manual systems. The lack of systems that store and archive evidence for a history of the demand for goods. Re-filing goods orders due to inaccurate calculations done using estimates warehouse clerk, inventory resulting void because the goods ordered are yet to come.Need a system that can be used to manage incoming goods, goods out, and re-filing order goods, so inventories of goods in warehouse PT. Telkom Surabaya access can run optimally and not experience emptiness inventory. The system can also print the form of demand for goods that can be used as archival storage.With this system implemented, no longer experienced warehouse inventory vacancy. Reports generated to cleanly and accurately

Inventories in motion : a new approach to inventories over the business cycle

I propose an inventories-in-motion concept which represents a new approach to inventories over the business cycle. This channel has previously been ignored by macroeconomists. I build a general equilibrium business cycle model in which inventories arise naturally as a result of gaps between production of goods and their consumption as goods are distributed. These inventories are actively managed and adjusted to meet consumption and investment needs in the economy. Although conceptually very simple, I show that such inventory behaviour matches a number of stylised facts of aggregate inventories. Nonetheless, my model does not admit an important role for inventory management improvements in declining macroeconomic volatility in the last 30 years

Design Information System Stock Inventory to Manage Data of Goods (Case Study: PT Monier)

Application of information system on the inventory will provide many benefits for the company in developing company in order to improve the company's performance become more effective and efficient. This research was conducted at manufacturing companies, to know overall about inventory items in the company. The purpose of this research is to find out the effectiveness of the inventory as a resource physical economy that needs to be held and maintained in order to support the process booking goods and sales in progress PT Monier. PT Monier is as a company manufacturers concrete roofing materials with the production system where the process for creating objects with cross-section of fixed. The methods of analysis used is descriptive data analysis method. Engineering data collection with do the observations to the company, conducting interviews, and route the study library with books, the literary, the materials gained during lectures relevant to the problems examined. Research results shows that the control of inventory items It often happens booking of the goods to the supplier in excess inventory and the shortage of supplies. Due to the lack of regard for the State of inventory items. Inventory data input errors often occur more than once for similar goods give rise to errors in reporting. Then the author here attempted to analyze the problems against information systems inventory items and to find solutions to the fore of the existing problems by fixing a system that is less than optimal. Keywords : Information Systems, Effectiveness, Inventory Item

Inventories and the business cycle: an equilibrium analysis of (S,s) policies.

We develop an equilibrium business cycle model in which the producers of final goods pursue generalized (S,s) inventory policies with respect to intermediate goods, a consequence of nonconvex factor adjustment costs. Calibrating our model to reproduce the average inventory-to-sales ratio in postwar U.S. data, we find that it explains over half of the cyclical variability of inventory investment. Moreover, inventory accumulation is strongly procyclical, and production is more volatile than sales, as in the data. ; The comovement between inventory investment and final sales is often interpreted as evidence that inventories amplify aggregate fluctuations. In contrast, our model economy exhibits a business cycle similar to that of a comparable benchmark without inventories, though we do observe somewhat higher variability in employment, and lower variability in consumption and investment. Thus, equilibrium analysis, which necessarily endogenizes final sales, alters our understanding of the role of inventory accumulation for cyclical movements in GDP. The presence of inventories does not substantially raise the variability of production, because it dampens movements in final sales. Similarly, when reductions in adjustment costs lower, but do not eliminate, average inventory holdings, the variability of GDP is essentially unchanged, because the reduced costs cause an offsetting rise in the variability of final sales.Inventories ; Business cycles

Inventories, lumpy trade, and large devaluations

Fixed transaction costs and delivery lags are important costs of international trade. These costs lead firms to import infrequently and hold substantially larger inventories of imported goods than domestic goods. Using multiple sources of data, the authors document these facts. They then show that a parsimoniously parameterized model economy with importers facing an (S, s)-type inventory management problem successfully accounts for these features of the data. Moreover, the model can account for import and import price dynamics in the aftermath of large devaluations. In particular, desired inventory adjustment in response to a sudden, large increase in the relative price of imported goods creates a short-term trade implosion, an immediate, temporary drop in the value and number of distinct varieties imported, as well as a slow increase in the retail price of imported goods. The authors' study of 6 current account reversals following large devaluation episodes in the last decade provides strong support for the model’s predictions.Inventories ; Trade