Determination of parameters of the stochastic inventory management system in the conditions of economically-based shortage
Journal Title: Восточно-Европейский журнал передовых технологий - Year 2019, Vol 1, Issue 3
Abstract
<p>A methodical approach to determining the optimal parameters of a stochastic inventory management system in the context of an economically justified deficit that allows responding quickly to fluctuations in demand and the dynamics of changes in inventory status is proposed and tested on real data. This approach relates, in particular, the shortage costs and the corresponding service level with the values of safety stock, order quantity and the threshold stock level. The technique is applicable to the normal distribution of inventory consumption and delivery time.</p><p>Determining the optimal parameters of the inventory management system in the conditions of unstable consumption and replenishment allows you to prevent an overestimation of the volume of inventories in the warehouses of industrial and commercial enterprises. At the same time, the need for working capital (the value of investments in stocks) and the total value added in the supply chains of goods decline, the risks of illiquid stocks decrease.</p><p>As a result of the study, a causal relationship was established between the level of customer service, the shortage level, order quantity and safety stock volume. It is proved that the procedure for determining the parameters of the stochastic inventory management system should be preceded by determining the economically feasible shortage level, which will determine the optimal level of customer service and the optimal size of safety stock by the criterion of total costs.</p>The proposed approach allows processing the accumulated statistical data on the dynamics of changes in stock status in real time using statistical methods and finding a compromise between the size of safety stock, the shortage level and the level of customer service by the criterion of minimum total costs
Authors and Affiliations
Lidiia Savchenko, Mariya Grygorak
Keywords
Related Articles
- EP ID EP666173
- DOI 10.15587/1729-4061.2019.156475
- Views 92
- Downloads 0
Development of energy-saving technology for maintaining the functioning of heat pump power supply
<p class="a">An integrated system of maintaining functioning of heat pump power supply based on prediction of a change of local water temperature was developed. A change in refrigerant vapor flow rate, the number of rota...
Development of the technique for restricting the propagation of fire in natural peat ecosystems
<p>In order to reduce the scale of peat fires, we suggest using fire barriers made of mineralized materials. The incombustible materials are proposed, specifically sand and bentonite clay, to be used for filling up artif...
A method developed to calculate lateral earth pressure on a sheet pile wall with counterforts
<p>A method has been developed for calculating the lateral earth pressure on a sheet pile wall with counterforts of various shapes – rectangular, trapezoidal with downward expansion, and trapezoidal with upward expansion...
Using Markov chains for predicting collective motivation of students.
Predicting students' motivation hot topic for research in higher education. In previous work had created a comprehensive model for evaluating students' motivation. As part of the floor is the algorithm of the forecast av...
Analytical estimation of inertial properties of the curved rotating section in a drill string
<p>We have proposed approaches to analytical assessment of the moment of inertia related to the curved rotary sections in a drill string. Research into rotation processes of the curvilinear sections in a drill string is...