Increasing the business activity of an economic entity based on improving the use of reserves

Abstract

Importance: business activity is one of the aspects of the economic activity of a corporation, characterizing the sustainability of development in the current period and in the long term. Business activity is assessed using a number of indicators, one of which is the use of inventories in business processes. Purpose: to study the possibilities of increasing business activity based on the rational use of inventories, determining development directions that take into account the specifics of the corporation’s activities. Research design: the business activity of a corporation is characterized by quantitative and qualitative indicators that provide an assessment of the sustainability of activities, an increase in financial resources, and the competitiveness of a corporation. One of the areas of increasing the business activity of a trading corporation is accelerating inventory turnover by regulating the assortment policy aimed at satisfying consumer demand by regulating the range of goods, which contributes to increasing economic benefits. Results: the business activity of corporations is influenced by external and internal factors, one of which is the effectiveness of the use of inventories in business processes. Monitoring and adjusting the business activity of a trading corporation involves assessing the use of goods, the most liquid inventories. The study of indicators of the structure and maintenance of stocks of trading corporations by the ABC and XYZ analysis method allows us to identify highly profitable goods with stable demand, ensuring the stability and business activity of the corporation.