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Inventory holding costs include. Storage costs

General Electric uses a just-in-time delivery method when it comes to trading large equipment. Sales agents carry samples, take orders and forward them via email to the DE plant, where the required equipment is manufactured and then sent to the customer or dealer. The result is lower costs for storage and inventory of goods and satisfied dealers.

Storage costs increase

Storage and transportation costs

Minor and rare metals are still used in technology in very small quantities. The world's leading countries have warehouse reserves of such metals that can satisfy global demand for 5-10 years. Due to their small volumes, storage costs are low. Despite the relatively high prices on individual species of these metals, the limitations of the survey and the possibility of covering it from warehouses do not allow us to count on successful business in this area. Attempts to enter such a market with additional products in anticipation of high prices immediately lead to a drop in prices.

So, for the effective functioning of a company and its achievement of commercial success, a coherent system of economic actions is necessary, which is called marketing, the study of high-quality organization and the implementation of marketing functions. The enterprise is obliged to produce competitive, consumer-oriented goods and services and sell them in as soon as possible with good service and low costs. If an enterprise produces uncompetitive goods, it will have to spend much more money to sell them, because products will be sold slowly (costs for storing goods will increase, it will be necessary to use more personnel to sell uncompetitive goods, advertising costs will have to increase, etc.) than when selling a demand-driven product. These costs can increase to such a value that the sale of the produced goods becomes unprofitable. But even in the production of competitive goods, rationalization of product sales is necessary to create a favorable image of the enterprise, faster sales of goods, reduction and optimization of distribution costs, which make up the majority of the company’s expenses. The most important criterion for a company's success is the size of its profit. Without making a profit, the further functioning of the enterprise is impossible. And a big role in reducing the profit of an enterprise is played by the reduction of distribution costs, which are reduced by rationalizing the entire work of the company through various marketing activities. Therefore, the system of actions within the framework of marketing, along with strengthening market positions and increasing the competitiveness of goods, is aimed at improving circulation, reducing its costs and rationalizing product sales.

The cost of one item in each month is CU 4. An item produced for later sale incurs additional storage costs of CU 0.5 per month. On the other hand, each product released against unfulfilled orders is subject to a fine of CU 2 per month.

From (6.5.2) it is clear that transport and storage costs can be reduced without any increase in the penalty -

This logistics model allows you to predict changes in loading for subsequent periods of time, which will reduce inventory storage costs and transportation costs.

This practice allows us to stage the process service and further development of products to a new quality level. However, it is unthinkable without the use of information technologies along the entire chain of information collection and processing, the costs of storing, systematizing and analyzing the data obtained, as well as distributing the acquired knowledge among all service departments and specialists, will be too high and poorly recouped.

Some leading companies supply production with material resources without any reserves at all on a just-in-time basis. Components, raw materials, materials, energy resources arrive at the time they are needed. At the same time, storage costs become minimal and production costs are reduced.

The purpose of this model is to minimize the negative consequences of stockpiling, which is expressed in certain costs. These costs come in three main types: ordering, storage, and losses associated with insufficient inventory levels. The latter occur when reserves are exhausted. In this case, the sale of finished products or the provision of services becomes impossible, and losses also arise from downtime of production lines, in particular due to the need to pay workers, although they are not working at the moment.

Maintenance high level reserves eliminates losses caused by their shortage. Purchasing large quantities of materials needed to create inventories in many cases minimizes ordering costs because the firm can obtain appropriate discounts and reduce paperwork. However, these potential benefits are offset by additional costs such as storage, handling, interest, insurance, spoilage, theft, and additional taxes. In addition, management must consider the possibility of tying up working capital with excess inventory, which prevents capital from being invested in profitable stocks, bonds or bank deposits. Several specific models

Three examples will help understand the application of the universal cost-plus-markup pricing rule. Consider a chain of retail supermarkets. Although the elasticity of market demand for food is small (about -1), a few supermarkets typically serve a large portion of an area, and therefore none can raise their prices significantly without losing many consumers to other stores. As a result, the elasticity of demand for any supermarket often reaches - 10. Substituting this value instead of Ed in equation (10.2), we obtain P = MC/(1 -0.1) = = MC/(0.9) = (1, 11)MS. In other words, the manager of a typical department store should set the price about AND% higher marginal cost. For different production volumes (holding store size and number of employees constant), marginal costs include the cost of buying food in bulk, the cost of storing it, stocking it on shelves, etc. For most department stores, the markup will undoubtedly be 10-11%.

Among the factors influencing distribution costs, the choice of economical forms of goods distribution is considered, that is, an increase in transit turnover and a reduction in warehouse sales. This will significantly reduce the costs of storing and processing goods, develop basic criteria for selecting suppliers in modern economic conditions and, consequently, reduce distribution costs.

In the supplied area there are n consumers (micro-districts of consumption) of petroleum products and tons of operating oil depots. It is required to determine the minimum total costs for transport and storage, i.e.

Suppose we stop part of the production of cheese A and redirect it to the production of cheese B. What effect will this have on the coverage amounts? Again, if the fixed production costs at the plant are $150 and can be allocated in any way to all production lines, then these costs will not be relevant compensation. However, if the nature of the fixed costs is directly related to this product, then in this case the fixed costs would have to be taken into account. Let's say that cheese B requires an additional storage tank for aging the cheese, but cheese A does not. Depreciation charges for the new cheese tank B, even if they are from the fixed production costs, must be taken into account.

In this case, the share of variable costs means only variable costs for part-time work, storage, etc., without purchasing

Generalized form of value

Changed nature of the form of value

Relationship between the development of relative value form and equivalent form

The transition from the general form of value to the monetary form

Monetary form

4. Commodity fetishism and its secret

Chapter Two: The Exchange Process

Chapter Three: Money, or the Circulation of Goods

1. Measure of values

2. Medium of circulation - Metamorphosis of goods

Circulation of money

Coin. Value sign

3. Money

Treasure education

Instrument of payment

World money

Section two: transformation of money into capital - Chapter four: transformation of money into capital General formula of capital

2. Contradictions of the universal formula

3. Buying and selling labor

Section Three: Production of Absolute Surplus Value - Chapter Five: The Labor Process and the Process of Increasing Value The Labor Process

2. Value Addition Process

Chapter Six: Constant Capital and Variable Capital

Chapter VII. – rate of surplus value 201 Chapter Seven: rate of surplus value

1. Degree of labor exploitation

2. Expression of the cost of the product in relative shares of the product

3. “The Last Hour” by Senior

4. Surplus product

Chapter Eight: Working Day

1. Limits of the working day

2. An unquenchable thirst for surplus labor. Manufacturer and boyar

3. Branches of English industry without legal boundaries of operation

4. Day and night work. Shift system

5. Fight for a normal working day. Compulsory laws to lengthen the working day from the mid-14th to the end of the 17th century

6. Fight for a normal working day. Compulsory limitation of working hours by law. English Factory Legislation 1833–1864

7. Fight for a normal working day. The influence of English factory legislation on other countries

Chapter Nine: Norm and Mass of Surplus Value

Section Four: Production of Relative Surplus Value Chapter Ten: The Concept of Relative Surplus Value

Chapter Eleven: Cooperation

Book two: the process of circulation of capital - Section one: metamorphoses of capital and their circulation Chapter one: circulation of money capital

I. First stage: d – t

II. Second stage. Function of productive capital

III. Third stage. T – d

IV. The circuit as a whole

Chapter Two: Circulation of Productive Capital

I. Simple reproduction

II. Accumulation and reproduction on an expanded scale

III. Saving money

IV. Reserve fund

Chapter Three: Circulation of Commodity Capital

Chapter four: three figures of the circulation process (natural, monetary and credit economy. Covering supply and demand)

Chapter Five: Circulation Time

I. Net distribution costs

II. Storage costs

III. Transport costs

Section Two: Capital Turnover Chapter Seven: Turnover Time and Number of Turnovers

Chapter Eight: Fixed Capital and Working Capital

I. Shape differences

II. Components, compensation, repairs, fixed capital formation

Chapter Nine: Total turnover of advanced capital. Revolution cycles

Chapter Ten: Theories of fixed and working capital. Physiocrats and Adam Smith.

Chapter Ten: Theories of fixed and working capital. Physiocrats and Adam Smith. – Continued - 1

Chapter Ten: Theories of fixed and working capital. Physiocrats and Adam Smith. – Continued - 2

Chapter Ten: Theories of fixed and working capital. Physiocrats and Adam Smith. – Continued - 3

Chapter Eleven: Theories of Fixed and Working Capital. Ricardo

Chapter Twelve: Working Period

Chapter Thirteen: Production Time

Chapter Thirteen: Production Time – Continued 1

Chapter Thirteen: Production Time – Continued 2

Chapter Thirteen: Production Time – Continued 3

Chapter Fourteen: Time of Conversion

Chapter Fourteen: Time of Reversal continued - 1

Chapter Fourteen: Time of Reversal continued – 2

Chapter Fourteen: Time of Reversal continued -

Chapter fifteen: the influence of turnover time on the amount of capital advanced

Chapter fifteen: the influence of turnover time on the amount of capital advanced - continued 1

Chapter fifteen: the influence of turnover time on the amount of capital advanced - continued 2

I. The working period is equal to the circulation period

II. The working period is longer than the circulation period

III. The working period is less than the circulation period

IV. conclusions

V. Impact of price changes

V. Impact of price changes - continued 1

Chapter sixteen: turnover of variable capital

I. Annual rate of surplus value

I. Annual rate of surplus value – continued - 1

I. Annual rate of surplus value – continued - 2

I. Annual rate of surplus value – continued – 3

II. Turnover of individual variable capital

II. Turnover of individual variable capital – continued 1

III. Turnover of variable capital from a social point of view

II. Turnover of individual variable capital - continued 2

Chapter Seventeen: Circulation of Surplus Value

Chapter Seventeen: Circulation of Surplus Value – continued 1

I. Simple reproduction

I. Simple reproduction – continued - 1

I. Simple reproduction – continued - 2

I. Simple reproduction – continued - 3

I. Simple reproduction – continued - 4

II. Accumulation and expanded reproduction

II. Accumulation and expanded reproduction – continued 1

II. Accumulation and expanded reproduction – continuation 2

Section Three: Reproduction and Circulation of All Social Capital Chapter Eighteen: Introduction

I. Subject of research

II. The role of money capital

Chapter nineteen: previous ideas about the subject

I. Physiocrats

II. Adam Smith - Smith's General Propositions

II. Adam Smith - constant part of capital

II. Adam Smith - capital and income of a. Smith

II. Adam Smith - summary

III. Later economists

Chapter Twenty: Simple Reproduction

I. Statement of the question

II. Two public production units

IV. Exchange within Division II. Necessities of life and luxuries

V. Mediation of money exchange

VI. Permanent capital of division I

VII. Variable capital and surplus value in both divisions

VIII. Constant capital in both divisions

IX. Retrospective look at a. Smith, Storch and Ramsey

X. Capital and income: variable capital and wages

XI. Reimbursement of fixed capital

XI. Reimbursement of fixed capital - compensation in cash of part of the value of fixed capital lost due to wear and tear

XI. Reimbursement of fixed capital - replacement of fixed capital in kind

XI. Reimbursement of fixed capital - conclusions

XII. Reproduction of monetary material

XII. Reproduction of monetary material - continued - 1

XII. Reproduction of monetary material - continued - 2

XIII. Destutt de Tracy's theory of reproduction

Chapter Twenty-One: Accumulation and Expanded Reproduction

I. Accumulation in division I formation of treasure

I. Accumulation in division I - additional constant capital

I. Accumulation in division I - additional variable capital

II. Accumulation in Division II

III. Schematic representation of accumulation

III. Schematic representation of accumulation - first example

III. Schematic representation of accumulation - second example

III. Schematic representation of accumulation - exchange of iIc during accumulation

IV. Additional Notes

Book Three: The Process of Capitalist Production Taken as a Whole Preface

Preface - continuation 1

Preface – continuation 2

Preface – continuation 3

Preface - continuation 4

Section one: transformation of surplus value into profit and the rate of surplus value into the rate of profit Chapter one: production costs and profit

Chapter Two: Rate of Profit

Chapter Three: The Rate of Profit to the Rate of Surplus Value

Chapter three: the ratio of the rate of profit to the rate of surplus value – continued 1

I.M" does not change, changes

Chapter three: the ratio of the rate of profit to the rate of surplus value – continued 2

1)M" and k do not change, V changes

Chapter three: the ratio of the rate of profit to the rate of surplus value – continued 3

2)M" does not change, V changes, k changes due to a change in V

Chapter three: the ratio of the rate of profit to the rate of surplus value – continued 4

3)M" and V do not change, c and therefore k change

Chapter three: the ratio of the rate of profit to the rate of surplus value - continued 5

4)M" does not change, V, s and k change

Chapter three: the ratio of the rate of profit to the rate of surplus value – continued 6

II.M" changes

1)M" changes, does not change

Chapter three: the ratio of the rate of profit to the rate of surplus value – continued 7

2)M" (or m) and V change, k does not change

Chapter three: the ratio of the rate of profit to the rate of surplus value - continued 8

3)M", V and k change

Chapter Four: The Impact of Turnover on the Profit Rate

Chapter Four: The Impact of Turnover on the Profit Rate – Continued 1

Chapter Five: Economy in the Application of Constant Capital

I. General provisions

I. General provisions – continued 1

I. General provisions – continued 2

I. General provisions – continued 3

II. Savings on working conditions at the expense of the worker. Neglecting essential expenses

II. Savings on working conditions at the expense of the worker. Neglecting the most necessary expenses - continued 1

II. Savings on working conditions at the expense of the worker. Neglecting the most necessary expenses - continued 2

III. Savings in the production of motive power, in the transmission of power and in buildings

IV. Use of production excrement

IV. Use of production excrement – continued 1

V. Savings achieved through inventions

Chapter Six: The Impact of Price Changes

I. Fluctuations in prices of raw materials, their direct impact on the rate of profit

II. Increase and decrease in the value of capital, its release and tying up

III. General illustration: Cotton crisis 1861-1865 Previous period 1845-1860

1861-1864 Years. American Civil War. Cotton famine. The most striking example of a break in the production process due to the lack and high cost of raw materials

Chapter Seven: Additions

II. Storage costs

Circulation costs arising from a simple change in the form of value, from circulation considered in its pure form, are not included in the value of goods. The portions of capital thus expended are, so far as the capitalist is concerned, mere deductions from the productively expended capital. The distribution costs that we will now consider are of a different nature. They can flow from processes of production that only continue in circulation and whose productive character, therefore, is only obscured by the form of circulation. On the other hand, from a social point of view, they may be pure costs, an unproductive expenditure of living or embodied labor, but precisely because of this they can act in such a way that they create value for the individual capitalist, form a premium to the selling price of his goods. The latter follows from the fact that these costs are different in different spheres of production, and sometimes different for different individual capitals within the same sphere of production. Forming a premium to the price of the commodity, they are distributed in accordance with the amount they fall on the individual capitalists. But any labor that adds value can also add surplus value and, on the basis of capitalist production, will always add surplus value, because the value it creates depends on its own value, and the surplus value it creates depends on the amount in which the capitalist pays for labor . Thus, costs that increase the price of a commodity without adding anything to its use value, and therefore constitute a faux frais of production for society, can constitute a source of enrichment for an individual capitalist. On the other hand, these circulation costs do not lose the character of unproductive costs because the premium they add to the price of goods only distributes these costs evenly. For example, insurance companies distribute the losses of individual capitalists across the entire class of capitalists. However, this does not prevent losses equalized in this way from still being losses in relation to all social capital.

1 - Formation of stock in general

During the time that the product exists in the form of commodity capital or while it remains on the market, that is, during the entire period of time between the production process from which the product comes out and the consumption process into which it enters, the product forms a commodity supply . As a commodity on the market and, therefore, in the form of a stock, commodity capital appears twice in every circuit: first as the commodity product of the very capital in motion whose circuit is being considered; then, on the contrary, as a commodity product of other capital, as a product that must be on the market in order to be bought and converted into productive capital. It is possible, of course, that this latter commodity capital is produced only to order. Then there is a break for the entire time during which it is produced. But the course of the process of production and reproduction requires that a certain mass of goods (means of production) be constantly on the market and, therefore, constitute a supply. In the same way, productive capital includes the purchase of labor power, and the money form is here only the form of the value of the means of subsistence, most of which the worker has to find on the market. Below in this paragraph we will dwell on this issue in more detail. But the following is already clear here. If we consider this. from the point of view of capital value in motion, which has been transformed into a commodity product and now must be sold, that is, must be converted back into money, which “therefore now functions on the market as commodity capital,” then this is the state of commodity capital, in which it forms a reserve, represents an inappropriate, forced stay on the market. The faster the sale is made, the faster the reproduction process proceeds. Delay in form transformation T" – D" prevents the actual metabolism that must take place in the circulation of capital, and the further functioning of the latter as productive capital. On the other hand, the constant availability of goods on the market, i.e., inventory, is relative to to D – T a condition without which neither the process of reproduction nor the use of new or additional capital can proceed.

In order for commodity capital to remain on the market as a commodity stock, various buildings are required. shops, warehouses for goods, warehouses for goods, therefore, the expenditure of constant capital is required, as well as payment for the labor force necessary to put goods in storage. In addition, goods deteriorate and are exposed to harmful natural influences. To protect them from this, it is necessary to spend additional capital partly on means of labor in objective form, partly on labor power. 454 Thus, the existence of capital in the form of commodity capital and, therefore, as a commodity stock gives rise to costs which, since they do not belong to the sphere of production, are considered costs of circulation. These distribution costs differ from those given in paragraph I in that they are to a certain extent included in the cost of goods and, therefore, increase the price of goods. In all circumstances, capital and work force, serving for the maintenance and storage of inventory, are abstracted from the direct production process. On the other hand, the capital invested here, including labor force as component capital must be reimbursed from the social product. Therefore, spending them acts in the same way as reducing productive force labor, so that more capital and labor are required to obtain a certain useful effect. This - unproductive costs.

Since the costs of circulation, due to the formation of a commodity stock, follow only from the duration of the period during which the available values are transformed from the commodity form into the money form, therefore, since the costs of circulation flow only from a certain social form of the production process (only from the fact that the product is produced as a commodity and therefore must undergo transformation into money), in so far as they are completely identical in nature with the costs of circulation listed in point I. On the other hand, the value of goods is maintained or increased only because the use value, the product itself, is placed in such specific objective conditions that cause the expenditure of capital, the product is subjected to such operations through which additional labor affects use values. On the contrary, the calculation of commodity values, the accounting of this process, purchase and sale transactions do not affect the use value in which commodity value exists. All these operations relate only to the form of commodity value. Therefore, although in the above case 455 these unproductive costs of stock formation (which in this case is forced) arise only from the delay in the transformation of form and from the necessity of this latter, they still differ from the unproductive costs considered in paragraph I in that their goal is not to transform the form of value, but to preserve the value that exists in the commodity as a product, as a use value, and which therefore can only be preserved through the preservation of the product, the preservation of the use value itself. The use value here does not rise or increase. On the contrary, it is decreasing. But its reduction is set within certain limits, and it remains. The advanced value existing in the commodity does not increase here either, but new labor, both embodied and living, is added to it.

Now it is still necessary to examine to what extent these unproductive costs owe their origin to the unique character of commodity production in general and commodity production in its general absolute form, that is, capitalist commodity production; how much, on the other hand, they are inherent in any social production, but here, in capitalist production, they only take on a special form, a special form of manifestation.

A. Smith put forward the absurd proposition that the formation of a reserve is a specific feature of capitalist production. Later economists, such as Lalor, on the contrary, argue that with the development of capitalist production, the formation of reserves decreases. Sismondi even sees in this the shadow side of capitalist production. 456

In reality, the stock exists in three forms: in the form of productive capital, in the form of the individual consumption fund and in the form of commodity stock or commodity capital. When the supply in one form increases, the supply in the other form decreases relatively, although in its absolute value it can simultaneously increase in all three forms.

It goes without saying that where production is aimed directly at satisfying one’s own needs and where only a small part of the product is produced for exchange or sale, therefore, where the social product does not take the form of a commodity at all or takes it only in a small part, there is a supply of the form of goods, or commodity stock, forms only an insignificant and imperceptible part of wealth. As for the consumption fund, it is relatively large here, especially the fund of subsistence itself. It is enough to recall only the ancient peasant farming. The predominant part of the product is transformed here directly, without forming a commodity stock - precisely because it remains in the hands of its owner - into spare means of production or into spare means of subsistence. It does not take the form of commodity stock, and that is why, according to A. Smith, in societies; Based on this method of production, there is no reserve. A. Smith confuses the form of the supply with the supply itself and thinks that until now society has existed, interrupted from day to day, or relied on the accidents of tomorrow. This is a naive misunderstanding.

The supply in the form of productive capital exists in the form of means of production that are already in the process of production or, at least, in the hands of the producer, that is, in a latent form already in the process of production. We saw earlier that along with the development of labor productivity, and consequently the capitalist mode of production, which develops the social productive power of labor more than all previous methods of production, the mass of means of production is constantly increasing, having once and for all entered into the production process in the form of means of labor and constantly functioning in it again and again for a more or less long period of time (buildings, machines, etc.); we have also seen that the growth of these means of production is both a prerequisite and a consequence of the development of the social productive power of labor. Not only the absolute, but also the relative growth of wealth in this form (cf. Capital, Book I, Chapter XXIII, 237) is characteristic primarily of the capitalist mode of production. However, the material forms of existence of constant capital, i.e. means of production, consist not only of this kind of means of labor, but also of the material of labor at the most various stages of its processing and of auxiliary materials. Along with the increase in the scale of production and with the increase in the productive power of labor through cooperation, division of labor, the use of machines, etc., the mass of raw materials, auxiliary materials, etc., included in the daily process of reproduction, also increases. These items must be available at the production site. Thus the size of this supply, existing in the form of productive capital, increases absolutely. In order for the production process to proceed continuously - completely independent of whether this supply is renewed daily or only after certain periods - it is necessary that a larger supply of raw materials, etc., be constantly available at the place of production than is consumed, for example, daily or weekly. The continuity of the process requires that the availability of the necessary conditions for it does not depend either on possible interruptions in daily purchases, or on the fact that the commodity product is sold daily or weekly and can therefore only be converted back into elements of its production irregularly. Meanwhile, it is obvious that productive capital in very different amounts can be in a latent state or constitute a reserve. For example, a big difference, whether the spinning manufacturer should have a supply of cotton or coal ready for three or one month. Thus, it is obvious that this reserve can decrease relatively, although it absolutely increases.

This depends on various conditions, which essentially all amount to the greater speed, regularity and reliability with which the mass of raw materials necessary to ensure that there is never an interruption in the process of production can be delivered. The less these conditions are met, therefore, the less reliability, regularity and speed of delivery, the more significant the manufacturer should have a hidden part of productive capital; that is, a stock of raw materials still awaiting processing, etc. These conditions, and consequently the size of the stock itself in this form, are in inverse relation to the level of development of capitalist production, and therefore the productive power of social labor.

Meanwhile, what here appears to be a decrease in the stock (for example, for Lalor) is in part only a decrease in the stock in the form of commodity capital, or the commodity stock itself. Consequently, this is only a change in the form of the same stock. If, for example, the quantity of coal mined daily in a given country is large, and if, consequently, the extent and intensity of the mining of coal is great, then the spinning manufacturer does not require a large stock of coal in his warehouse to ensure the continuity of his production. The supply of coal, which is constantly and regularly renewed, makes this unnecessary. Secondly, the speed with which the product of one process can pass as a means of production into another depends on the development of means of transport and communications. The cheapness of transport plays a big role in this. A constantly renewed supply of, for example, coal from a mine to a spinning mill would be more expensive than supplying a larger amount of coal over a longer period of time with relatively cheaper transport. Both of these circumstances, which we have considered so far, are determined by the production process itself. Thirdly, the development of the credit system has a certain influence. The less dependent the spinning manufacturer is on the direct sale of his cotton, coal, etc., when renewing his stocks of cotton, coal, etc. yarn - and the more developed the credit system, the less this direct dependence - the smaller the relative size of these reserves can be in order to ensure non-stop production of yarn on a given scale, in order to make it independent of the accidents of yarn sales. But, fourthly , many types of raw materials, semi-finished products, etc. require longer periods of time for their production. This is especially true of all those types of raw materials that agriculture provides. Therefore, in order to avoid interruption in the production process, a certain reserve must be available such types of raw materials for the entire period of time during which a new product cannot replace the old one. If this stock decreases in the hands of the industrial capitalist, this only means that it increases in the form of a commodity stock in the hands of the merchant. The development of means of transport makes it possible, for example, to quickly transport from Liverpool to Manchester cotton lying in the port into which it is imported. In this way, the manufacturer can, depending on need, renew his supply of cotton in relatively small parts. But on the other hand, the larger mass of this same cotton will be in the form of inventory in the hands of Liverpool merchants. Therefore, what is happening here is simply a change in the form of the stock, which Lalor and others miss. And if we consider social capital, then in both cases the same mass of product exists in the form of a reserve. With the development of means of transport for an individual country, the size of the necessary mass that must be prepared, for example, for a year, decreases. If numerous steamships and sailing ships make their voyages between America and England, then the stock of cotton in England can be renewed more often, and thus the average size of the stock of cotton that must lie in warehouses in England is reduced. The development of the world market and, consequently, the increase in the number of sources for obtaining the same product have exactly the same impact. The goods are imported in parts from different countries and at different times.

2 - Inventory itself

We have already seen that on the basis of capitalist production, a commodity becomes a general form of product and becomes larger the more this production develops in size and depth. Consequently, even with the same volume of production, the part of the product that exists in the form of goods becomes significantly larger than it was under previous methods of production or under the capitalist mode of production at a lower stage of development. But every commodity, and therefore every commodity capital, which is also only a commodity, which is the form of existence of capital value, every commodity, if it does not directly pass from the sphere of its production to the sphere of productive or individual consumption, i.e. Every product, while it is on the market, forms an element of inventory. Therefore, along with the development of capitalist production - even with unchanged production volumes - the commodity supply itself increases (that is, this isolation and consolidation of the commodity form of the product increases). We have already seen that this is only a change in the form of the stock: on one side the stock in commodity form increases only because on the other side, in the form of direct stock for production or consumption, it decreases. This is just a modified social form of stock. If, at the same time, not only the relative size of the commodity stock in comparison with the entire social product increases, but also its absolute value, then this happens because, along with the development of capitalist production, the mass of the entire product also increases.

With the development of capitalist production, the scale of production is less and less determined by the immediate demand for the product and more and more determined by the amount of capital at the disposal of the individual capitalist, the tendency of his capital to increase in value and the need for his process of production to proceed continuously and in an expanded manner. scale. At the same time, in each individual branch of production, the mass of the product that is on the market in the form of a commodity or is seeking sales increases. The mass of capital, fixed for a more or less long time in the form of commodity capital, grows. Therefore, inventory increases.

Finally, the majority of society turns into wage laborers, into people who live from day to day, receive their wages weekly and spend them daily, who, therefore, must find on the market the means of subsistence available in the form of a supply. No matter how great the fluidity of the individual elements of this stock may be, some of them must always remain motionless so that the entire stock can always be in motion.

All these points follow from the form of production and the transformation of form it presupposes, which the product must undergo in the process of circulation.

Whatever the social form of the food supply, its preservation requires costs: buildings, containers, etc. for storing the product; it also requires, depending on the nature of the product, more or less labor and means of production, which have to be expended to prevent harmful influences. The higher the social concentration of stocks, the relatively smaller these costs become. These costs always form part of social labor in embodied or living form - therefore, in the capitalist form they represent capital costs - which do not take part in the very formation of the product and therefore are a deduction from the product. They are necessary, these unproductive costs of social wealth. These are the costs of preserving the social product, regardless of whether the existence of the latter as an element of the commodity stock follows only from the social form of production, therefore, from the commodity form and its necessary transformations, or whether we consider the commodity stock only as a special form of stock of products , inherent in all societies, even if such a reserve did not have the form commodity stock, this form of stock of products related to the circulation process.

Now the question is, to what extent are these costs included in the cost of goods?

If a capitalist has converted his capital, advanced for the means of production and labor power, into a product, into a mass of finished goods intended for sale, and it remains in warehouses unsold, then at this time not only the process of increasing his capital in value stops. Expenses on buildings, additional labor, etc., which the preservation of this stock requires, constitute a direct loss. The buyer who finally appears would ridicule the capitalist if the latter says: my goods have not been sold for six months, and keeping them for these six months has not only caused so much of my capital to lie idle, but, in addition, , demanded from me X unproductive costs. Tant pis pour vous 457, the buyer will say. There is another seller near you whose product was produced only the day before yesterday. Your product is stale and probably more or less damaged by time. Therefore, you must sell cheaper than your rival. – The conditions of existence of a commodity do not change in the least depending on whether the commodity producer is the actual producer of his commodity or a capitalist producer, i.e., essentially only a representative of the real producers. He must turn his thing into money. The unproductive costs caused by fixing it in the commodity form belong to the area of his personal risk, which the buyer of the goods has nothing to do with. The latter does not pay him for the time of circulation of his goods. Even in cases where the capitalist deliberately delays his goods outside the market on time. actual or expected revolution in value, even in such cases, it depends only on the actual onset of this revolution, on the correctness or incorrectness of his speculative calculations, whether he realizes his additional unproductive costs. But the revolution in value is not a consequence of its unproductive costs. So, since the formation of a stock represents a suspension of circulation, the costs caused by this do not add any value to the product. On the other hand, no stock can exist without remaining in the sphere of circulation, without a more or less long stay of capital in its commodity form; Consequently, a stock is impossible without a suspension of circulation, just as the circulation of money is impossible without the formation of a monetary reserve. Thus, without a commodity stock, commodity circulation is impossible. If the need for the formation of a stock does not arise for the capitalist in U - D", then she appears for him in D – T; if it does not arise in relation to his commodity capital, then it arises in relation to the commodity capital of other capitalists who produce the means of production for himself and the means of subsistence for his workers.

It would seem that the essence of the matter cannot change depending on whether the formation of a stock occurs voluntarily or involuntarily, that is, whether the commodity producer intentionally holds a stock or whether his goods form a stock due to the resistance that the conditions of the circulation process itself offer to the sale of goods. Nevertheless, to resolve this issue, it is useful to know how voluntary stock formation differs from forced stock formation. The forced formation of a stock follows from the suspension of circulation or is identical with the suspension of circulation, which does not depend on the foresight of the capitalist and is contrary to his will. What characterizes the voluntary formation of a reserve? In both cases, the seller tries to sell his goods as quickly as possible. He constantly offers the product as a commodity. If he refrains from selling, then the product forms only a possible (duvamel), and not an actual (evepieia) element of the inventory. The commodity as such is still for him only a carrier of exchange value, but in this way. As such, it can only act through and after throwing off the commodity form, only after it has assumed the money form.

Inventory must reach a certain size in order to meet demand during a given period. At the same time, we have to count on a constant expansion of the circle of buyers. For example, in order to be sufficient for the day, part of the goods on the market must constantly remain in the commodity form, while the other flows, turns into money. Moreover, the part that stagnates, while the other flows, is constantly decreasing, just as the size of the stock itself is decreasing, until it is all sold out. Thus, the delay of goods is taken into account here as a necessary condition for their sale. Further, inventory levels must be greater than average sales or average demand. Otherwise, it would be impossible to cover the excess of demand over its average size. On the other hand, the supply must be constantly renewed, since it is constantly being consumed. This renewal is ultimately accomplished only through production, through the supply of goods. Whether these goods come from abroad or not from abroad does not change the matter at all. Renewal depends on the length of time required to reproduce goods. The inventory should be sufficient for this entire time. The fact that it does not remain in the hands of the original producers, but passes through various storage facilities, from the wholesale merchant to the retailer. does not change the essence of the matter, but only its external manifestation. From the point of view of society, in both cases part of the capital remains in the form of commodity stock until the commodity enters the sphere of productive or individual consumption. The manufacturer himself tries to have inventory in the warehouse in an amount corresponding to the average demand for his product in order to eliminate direct dependence on production and ensure a constant circle of customers. According to the periods of production, the terms of purchases are established, and the goods form a stock for a longer or shorter time until they are replaced by new copies of the same kind. Only through such formation of a reserve is the constancy and continuity of the circulation process ensured. and therefore the process of reproduction, which includes the process of circulation.

It must be recalled that T" – D" may already happen for the manufacturer T, Although T is still on the market. If the producer himself wanted to keep his own goods in his warehouse until such time as it was sold to the final consumer, then he would have to set in motion double capital: one as a producer of the goods, the other as a merchant. For the commodity itself - regardless of whether it is considered as a separate commodity or as an integral part of social capital - the matter does not change at all whether the costs of creating a stock fall on the producer of the commodity or on a number of merchants, starting with A and ending Z.

Since a commodity stock is nothing more than a commodity form of a product, which, given the scale of social production, not existing in the form of a commodity stock, would still exist either as a production stock (hidden production fund), or as a consumption fund (a stock of consumer goods), insofar as the costs caused by maintaining the stock, therefore, the costs of forming the stock, i.e., materialized or living labor used for this purpose, are simply transposed costs of preserving the social production fund or Public consumption fund. The increase in the value of goods caused by them only distributes these costs pro rata 458 between different goods, since they are different for various types goods. The costs of stock formation still remain deductions from social wealth, although they are one of the conditions for its existence.

Only insofar as commodity stock is a condition for commodity circulation and even a form that necessarily arises in commodity circulation, therefore, insofar as this apparent stagnation is a form of movement itself, just as the formation of a monetary reserve is a condition money circulation,. – only to the extent that this stagnation is normal. On the contrary, since the goods delayed in the reservoirs of circulation do not make room for the next wave of production of the Id, thus the reservoirs overflow, the stock of goods increases due to the delay in circulation, in exactly the same way as the size of the treasure increases when there is a delay in the circulation of money. It makes no difference whether this delay occurs in the warehouses of the industrial capitalist or in the warehouses of the merchant. In this case, inventory is no longer a condition for continuous sale, but a consequence of the fact that the goods cannot be sold. The costs remain the same, but since they now arise exclusively from the form, namely from the need to transform goods into money, and from the difficulty of this metamorphosis, they are not included in the value of the goods, but represent a deduction, a loss of value when the value is realized. So. Since normal and abnormal forms of stock do not differ in form from one another and both represent a suspension of circulation, then these phenomena can be mistaken for one another. They can mislead the agents of production themselves all the more easily because for the producer the process of circulation of his capital can proceed as before, although the process of circulation of his goods, which have passed into the hands of merchants, has been suspended. If the size of production and consumption increases, then, other things being equal, the size of the inventory increases. It is renewed and absorbed at the same speed, but its size becomes larger. Thus, the size of the commodity stock, inflated as a result of the suspension of circulation, may be mistakenly taken as a symptom of the expansion of the reproduction process; This error becomes possible especially when, with the development of the credit system, the actual movement can be mystified.

The costs of creating a stock consist of 1) a quantitative reduction in the mass of the product (as, for example, when creating a stock of flour); 2) from damage to quality; 3) from materialized or living labor, which the preservation of the stock requires.

STORAGE COSTS

the total costs associated with storing goods, from their placement in storage areas to the time of shipment to customers and other consumers.

Dictionary of financial terms. 2012

"Storage costs" in books

Costs of illegality

From the book No Choice: Autobiographical Narrative author Borodin Leonid Ivanovich

Costs of illegality I remember exactly the year, day, hour, even the moment when I first looked at my life from the outside. And I know from which side this glance happened. From the side of Fyodor Mikhailovich Dostoevsky. In the summer of 1968 (I also remember the month and day), in the zone numbered

Opportunity costs

From the book MBA in 10 days. The most important programs from the world's leading business schools author Silbiger Stephen

Opportunity Costs Our appetite for goods and services is insatiable, so we must decide how to allocate limited resources. Most often, increasing the production of a good or service requires sacrifice. Economists call such costs imputed. For example,

Step 2: Estimate costs

From the book Get Rich! A book for those who dare to earn a lot of money and buy themselves a Ferrari or Lamborghini author DeMarco MJ

Step 2: Estimate Costs Estimate the monthly costs of purchasing and maintaining what you want, including all associated taxes and insurance. Three cars: $2,000. House: $5,000. Cabin in the mountains: $1,000. Travel: $1,000. Private school: 1000

Costs, resource costs and the gold standard

From the book The Gold Standard: Theory, History, Politics author Team of authors

Costs, Resource Costs and the Gold Standard We have shown above that the most common estimates of the resource costs of gold are based on implausible assumptions about the supply conditions of the gold mining industry and the desired behavior of the price level. This section

Costs

From the book One Good Trade. Hidden information about the highly competitive world of private trading author Bellafiore Mike

Chapter VII. Basic and general costs of production of combined products, market costs. Risk insurance, reproduction costs.

From the book Principles of Economic Science author Marshall Alfred

Chapter VII. Basic and total costs production of combined products, market costs. Risk insurance, reproduction costs. § 1. We now move on to considering basic and additional costs, paying attention to Special attention proper distribution

8.6. Costs

From the book Economic Theory: Textbook author Makhovikova Galina Afanasyevna

8.6. Costs The economic activity of an enterprise is inextricably linked with the costs of resources. Accordingly, the expenditure of resources carried out in order to achieve a certain commercial result is usually called

Storage costs

From the book Great Soviet Encyclopedia (IZ) by the author TSB

author Laws of the Russian Federation

Article 114. Actions with goods in the event of exclusion of the owner of a temporary storage warehouse from the Register of Owners of Temporary Storage Warehouses In the event of revocation of the certificate of inclusion in the Register of Owners of Temporary Storage Warehouses or exclusion of the warehouse owner

From the book Customs Code of the Russian Federation author Laws of the Russian Federation

Article 429. Disposal of goods whose temporary storage period or storage period in a customs warehouse has expired Disposal of goods whose temporary storage period or storage period in a customs warehouse has expired is carried out on the basis of an act

From the book Customs Code of the Russian Federation author State Duma

author author unknown

ARTICLE 114. Actions with goods in case of exclusion of the owner of a temporary storage warehouse from the Register of owners of temporary storage warehouses In case of revocation of the certificate of inclusion in the Register of owners of temporary storage warehouses or exclusion of the warehouse owner

From the book Customs Code of the Russian Federation. Text with changes and additions for 2009 author author unknown

ARTICLE 429. Disposal of goods whose temporary storage period or storage period in a customs warehouse has expired Disposal of goods whose temporary storage period or storage period in a customs warehouse has expired is carried out on the basis of an act

63 WAREHOUSING AGREEMENT. SPECIAL TYPES OF STORAGE

From the book Cheat Sheet contract law author Rezepova Victoria Evgenievna

63 WAREHOUSING AGREEMENT. SPECIAL TYPES OF STORAGE A warehousing agreement is an agreement according to which a warehouse (custodian) undertakes, for a fee, to store goods transferred to it by the goods owner (depositor) and to return these goods to

Storage costs

Level and structure of I. x. are largely determined by the method of production of material goods.

In a capitalist economy, a significant part of agricultural production. is unproductive in nature, since as a result of the antagonistic contradictions of the capitalist mode of production, inventories are formed that cannot be sold. They reach especially large sizes during economic crises.

In a socialist economy, the overwhelming majority of agricultural products is productive in nature. The size of commodity reserves in the sphere of circulation is determined in a planned manner, based on the actual need for them for the uninterrupted implementation of the process of expanded socialist reproduction and ensuring the continuity of trade turnover. Their. in a socialist economy, aimed at preserving the products created by society are an important condition for saving socialist property.

Technical progress in all sectors of the national economy, the emergence of new types of products, increased requirements for their quality, and improved customer service necessitate further development of the material and technical base of supply, sales and trade organizations on the latest technical basis, in particular, extensive mechanization and automation of warehouse facilities. This leads to a certain increase in storage costs, but they are offset by the development of trade turnover, the growth of labor productivity in the sphere of circulation, savings from the preservation of huge masses of inventory, the elimination of product losses due to a lack of warehouses, storage facilities, etc. Therefore, development is material -technical base of supply and trade contributes to an increase in social wealth.

A. A. Jacobi.

Big Soviet encyclopedia. - M.: Soviet Encyclopedia. 1969-1978 .

Transport costs
Izdeshkovo

See what “Storage costs” are in other dictionaries:

STORAGE COSTS- the total costs associated with the storage of goods, starting from their placement in storage areas until the moment of shipment to buyers and other consumers. Dictionary of financial terms. Storage costs Storage costs are part of distribution costs,... ... Financial Dictionary

Storage Costs- See Distribution costs in trade Dictionary of business terms. Akademik.ru. 2001 ... Dictionary of business terms

storage costs- Part of the distribution costs associated with storing commodity-material assets at bases, warehouses, elevators and, if necessary, bringing their quality to the level required by consumers. … … Technical Translator's Guide

STORAGE COSTS Great Accounting Dictionary

STORAGE COSTS- part of the distribution costs associated with storing commodity-material assets at bases, warehouses, elevators and, if necessary, bringing their quality to the level required by consumers... Large economic dictionary

STORAGE COSTS- (STORAGE COSTS) a type of distribution costs and logistics costs; costs associated with ensuring product safety. Their. are additional costs caused by the continuation of the production process in the sphere of circulation, i.e. wear... ... Glossary of terms for cargo transportation, logistics, customs clearance

Inventory storage costs- STOCKHOLDING/INVENTORY COSTS Company costs associated with storing finished products, raw materials and work in progress. Storage costs include the cost of warehouse space, insurance, physical and obsolescence, and… … Dictionary-reference book on economics

Distribution costs- the totality of costs associated with the process of circulation (See Circulation) of goods. By its economic nature, I. o. are divided into pure and additional. Net costs are determined by the act of purchase and sale, the change in forms of value in... ... Great Soviet Encyclopedia

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