{"id":94302,"date":"2011-11-24T15:45:56","date_gmt":"2011-11-24T08:45:56","guid":{"rendered":"https:\/\/bahtera.jp\/position-control\/"},"modified":"2025-03-17T19:31:35","modified_gmt":"2025-03-17T12:31:35","slug":"position-control","status":"publish","type":"post","link":"https:\/\/bahtera.jp\/en\/position-control\/","title":{"rendered":"The Difference Between Long (Buying) and Short (Selling) in Position Management"},"content":{"rendered":"<p>In the inventory business, purchase contracts anticipating future demand or rising material prices, and sales contracts anticipating falling sales prices, arise. However, this introduces risks if the market moves in the opposite direction. To manage these positions, it\u2019s necessary to distinguish inventory into items linked to sales contracts and those that are not.<br \/>\n\t\t\t\t<a href=\"https:\/\/bahtera.jp\/en\/production-control-indonesia\/\" class=\"st-cardlink\" aria-label=\"Production Control System in Indonesia\">\r\n\t\t\t\t<div class=\"kanren st-cardbox\" >\r\n\t\t\t\t\t\t\t\t\t\t<dl class=\"clearfix\">\r\n\t\t\t\t\t\t<dt class=\"st-card-img\">\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/bahtera.jp\/wp-content\/uploads\/2020\/12\/1-16-150x150.png\" class=\"attachment-st_thumb150 size-st_thumb150 wp-post-image\" alt=\"\u30a4\u30f3\u30c9\u30cd\u30b7\u30a2\u306e\u751f\u7523\u7ba1\u7406\u30b7\u30b9\u30c6\u30e0\u307e\u3068\u3081\" srcset=\"https:\/\/bahtera.jp\/wp-content\/uploads\/2020\/12\/1-16-150x150.png 150w, https:\/\/bahtera.jp\/wp-content\/uploads\/2020\/12\/1-16-100x100.png 100w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/dt>\r\n\t\t\t\t\t\t<dd>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"st-cardbox-t\">Production Control System in Indonesia<\/p>\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"st-card-excerpt smanone\">\r\n\t\t\t\t\t\t\t\t\t<p>It\u2019s not limited to Indonesia, but it\u2019s often said that the ultimate goals of the manufacturing industry are twofold: &#8220;cost reduction through productivity improvement&#8221; and &#8220;delivering products on time without delays.&#8221; From a management perspective, business plans are crafted to maximize growth based on market supply and demand adjustments. However, even if sales increase due to low pricing, it only reduces gross profit, leading to losses from selling and administrative expenses or non-operating costs. On the other hand, raising unit prices isn\u2019t straightforward due to market price considerations. Therefore, process management based on production plans aimed at reducing costs through &#8230; <\/p>\n\t\t\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"cardbox-more\">\u7d9a\u304d\u3092\u898b\u308b<\/p>\r\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/dd>\r\n\t\t\t\t\t<\/dl>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t<\/a>\r\n\t\t\t\t  <\/p>\n<h2>Sales Contracts and Purchase Contracts<\/h2>\n<p>In the inventory business, purchase contracts anticipating future demand or rising material prices, and sales contracts anticipating falling sales prices, occur. It\u2019s somewhat akin to warrants in stock trading.<br \/>\nIn this case, both long (buying) and short (selling) positions carry risks if the market moves inversely. To manage these positions, it\u2019s necessary to distinguish inventory into items linked to sales contracts and those that are not.<br \/>\nTo make this distinction, the sales contract (S\/O number) must be linked at the time of the material purchase contract (P\/O issuance) and managed in the inventory management system along with the receipt number.  <\/p>\n<h2>Long and Short Positions<\/h2>\n<p>However, items for which a sales contract isn\u2019t confirmed at the time of receipt are recorded as long positions upon entry. Later, when linked to a sales contract, an S\/O number is assigned.<br \/>\nThus, to manage positions as described above, the system requires two functions:  <\/p>\n<div class=\"graybox\">\n<div class=\"maruno\">\n<ol>\n<li>Assigning an S\/O number at the time of receipt<\/li>\n<li>Assigning an S\/O number to long-position inventory after entry<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<p>For item 2, an implementation could involve separating long-position inventory from others using locations in inventory movement.<br \/>\n<img decoding=\"async\" class=\"aligncenter wp-image-11817 size-full\" src=\"https:\/\/bahtera.jp\/wp-content\/uploads\/posision.gif\" alt=\"Long and Short Positions\" width=\"572\" height=\"330\" \/>  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the inventory business, purchase contracts are made in anticipation of future demand and rising material costs, while sales contracts are made in anticipation of falling selling prices. However, this creates the risk of market fluctuations moving in the opposite direction. To manage this position effectively, it is necessary to distinguish between inventory that is tied to sales contracts and inventory that is not.<\/p>\n","protected":false},"author":2,"featured_media":81443,"parent":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[633],"tags":[],"class_list":["post-94302","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indonesia-production-control-system"],"_links":{"self":[{"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/posts\/94302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/comments?post=94302"}],"version-history":[{"count":0,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/posts\/94302\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/media\/81443"}],"wp:attachment":[{"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/media?parent=94302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/categories?post=94302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bahtera.jp\/en\/wp-json\/wp\/v2\/tags?post=94302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}