Abstract
The article deals with the problem of modeling the commodity flows management of a trading company under the conditions of uncertain demand and long supply. The Author presents an analysis of modifications of diversified inventory management system with random demand, for which one can find the optimal inventory control strategies, including those taking into account the time value of money and various limitations, thus maximizing the total cash flow. The Author considers stochastic simulation and optimization models which allow a company to reduce the costs of inventory management.
Highlights
In an increasingly competitive environment on the consumer market, stability of commercial enterprises is provided through the implementation of strategies aimed at meeting the consumer demand for commodities, and for the related services, as well as the reduction of all types of trade costs.Formation of such strategies predetermines the need to improve various enterprise systems, including inventory management system, based on the rationalization and optimization of commodity flows using the models and methods, appropriate to definition of concerned problems.The problem of optimizing the inventory level is not new
The Author presents an analysis of modifications of diversified inventory management system with random demand, for which one can find the optimal inventory control strategies, including those taking into account the time value of money and various limitations, maximizing the total cash flow
The author obtained the results, which indicated that compared with an approach based on the average projected values of demand, the use of approaches based on the optimization and simulation modeling to form the stocks with allowances made for the uncertainties in the parameters of inventory control strategy, can reduce costs by an average of 20%
Summary
In an increasingly competitive environment on the consumer market, stability of commercial enterprises is provided through the implementation of strategies aimed at meeting the consumer demand for commodities, and for the related services, as well as the reduction of all types of trade costs.Formation of such strategies predetermines the need to improve various enterprise systems, including inventory management system, based on the rationalization and optimization of commodity flows using the models and methods, appropriate to definition of concerned problems.The problem of optimizing the inventory level is not new. We maximize the total value of cash flow, which takes into account the income from sales, as well as the purchase and delivery costs of commodities: P R1 R2 max Subject to the limitations (7) on the maximum volume of cargo transported by one truck: m viri j V , j 1,..., k; (7)
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