An Improved Algorithm for Negative Inventory Balances in Inventory Cost Accounting under ERP Environment

In the manufacturing industry, negative inventory balances is an especially sticky subject for each enterprise. If enterprise does not allow negative inventory balances, that will affect transfer speed of logistics and information, but allowing negative inventory balances will exist inventory inaccurate risk. This paper mainly analyzed in the inaccurate problems caused by calculating inventory costs based on allowing negative inventory balances exists, and how to improved algorithm to solve them.