Ethical aspects of inventory management in an agricultural enterprise

Abstract

Inventory management has a different meaning in agriculture than in a commercial chain, but it is just as important. In most cases, the purpose of the inventory is to satisfy demand. Demand and supply do not always meet at a predetermined place and time but are shaped by external circumstances. It is the same in agriculture. Our research aims to present and compare simple inventory management methods through a practical agricultural example and to examine the ethical aspects. To manage inventory, we have to make an appropriate decision in the following two questions: when to order and how much to order. There are three basic inventory mechanisms: cycle inventory, damping inventory, and two-warehouse inventory. There are three levels within business ethics: macro-, meso-, and micro-level. In the case of the examined agricultural limited company, the meso- and micro-levels are affected by ethical problems. When handling inventory improperly, can the employee be held liable, or is the company responsible? The agricultural sector began to develop, which is mainly the result of developments in the use of information technology. Even so, many farms still use outdated methods, which should be changed to operate more economically