Recently, Sanan Optoelectronics released its 2013 annual report, which has a large inventory of raw materials, semi-finished products and finished products. At the end of 2013, the total inventory of Sanan was as high as RMB 1,158,430,694.43. The company expects the price to fall by RMB 10,023,528.14, and the book value of the inventory amounted to RMB 1,148,407,166.29.
A siren is a loud noise-making device. Civil defense sirens are mounted in fixed locations and used to warn of natural disasters or attacks. Sirens are used on emergency service vehicles such as ambulances, police cars, and fire trucks. There are two general types: pneumatic and electronic.
Many fire sirens (used for calling the volunteer fire fighters) serve double duty as tornado or civil defense sirens, alerting an entire community of impending danger. Most fire
sirens are either mounted on the roof of a fire station or on a pole
next to the fire station. Fire sirens can also be mounted on or near
government buildings, on tall structures such as water towers,
as well as in systems where several sirens are distributed around a
town for better sound coverage. Most fire sirens are single tone and
mechanically driven by electric motors with a rotor attached to the
shaft. Some newer sirens are electronically driven speakers.
Fire sirens are often called "fire whistles", "fire alarms", or
"fire horns". Although there is no standard signaling of fire sirens,
some utilize codes to inform firefighters of the location of the fire.
Civil defense sirens also used as fire sirens often can produce an
alternating "hi-lo" signal (similar to emergency vehicles in many
European countries) as the fire signal, or a slow wail (typically 3x) as
to not confuse the public with the standard civil defense signals of
alert (steady tone) and attack (fast wavering tone). Fire sirens are
often tested once a day at noon and are also called "noon sirens" or
"noon whistles".
The first emergency vehicles relied on a bell. Then in the 70s,
they switched to a duotone airhorn. Then in the 80s, that was overtaken
by an electronic wail.
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Coincidentally, in the 2013 annual report, Huacan Optoelectronics showed that the book value of inventory at the end of the year was also as high as 166,188,236.06 yuan, and a corresponding provision of a fall in price of 7,158,756.48 yuan.
On the one hand, it is the layout of expedited production capacity. On the one hand, it is a high water level inventory, and a large amount of inventory is commonplace in the LED industry. And in the rapidly changing industry, how can LED companies make good use of their inventory to compete in the market?
The difference between the times Luo Heng, general manager of Zhejiang Hengman Optoelectronics Marketing, believes that the current LED lighting and raw material prices change too much, the company's inventory should not be prepared too much. The second is that the specifications and models of the LED have not yet been finalized, and the risks of the company's inventory will increase.
In the era of traditional lighting, the company’s inventory standards are often 1.5 times normal monthly sales. The product technology line is relatively stable, and the product life cycle is relatively long. Enterprises must really implement large-scale sales coverage and sales promotion, and need to match ample inventory. Responsive to the needs of channels and users, you can do it in a timely manner.
In the era of semiconductor lighting, the speed of iterative technology of LED lighting is faster than that of traditional lighting. In the process of light source replacement, the rate of change in the penetration rate of LED products is also accelerating, and the application requirements of products fluctuate. In this case, If companies prepare for excessive inventory, once the company's turnover rate is not enough, companies will face product iteration risk.
The risk is high on the one hand because the performance of the product is improving, but the price is decreasing, and the inventory goods lose their original market competitiveness. For companies to maintain this competitiveness, they must quickly dispose of their inventory products, which means that companies have to bear the risk of losses. Companies with relatively small funds and pockets may be trapped.
Second, companies may have little risk of not doing inventory, but they may have conflicts with the customer's cycle. If companies do not respond to customers' orders or lack of response in a timely manner without making inventory, customers will choose not to cooperate and companies will face the risk of losing their orders.
At the same time, most domestic LED manufacturers rely on foreign trade companies to export their products to foreign markets. Many companies are market-oriented companies. In addition, the competition among domestic LED companies is very fierce, companies are often guided by customers, the industry is in a period of rapid development, and companies must be cautious in preparing inventory.