INVENTORY MANAGEMENT SYSTEM OPTIMIZATION OF THE UKRAINIAN PLANT

Abstract

The article is devoted to the problems of the efficient operation of enterprises and increasing of their competitiveness through the fast-changing market conditions in Ukraine. Investigated problem is reducing the costs and obtaining the maximum productivity from the inventory system of Ukrainian Engineering Plant "FED". The article presents the results of a study conducted by the authors on the inventory management process optimization of Ukrainian Engineering Plant "FED". The main scientific results: the study of the inventory system of Ukrainian Engineering Plant "FED" identified low inventory turnover, due to which their growth occurs, lack of own warehouse, the use of the principle of cell storage is inappropriate for this organization, which also causes an increase in stocks. The following solutions were proposed: reducing the share of stocks, that is, maintain constant sales and prevent them from stocking up in warehouses, using of an inventory management system with a fixed order size, the need of a properly equipped area for storing goods - a project to create a customs warehouse, implementing an automated inventory management system at Stock-M. Reducing the share of stocks and using of an inventory management system with a fixed order size will decrease the average annual inventory, the turnover ratio, respectively, the duration of the turnover period will also decrease. Implementing an automated inventory management system at Stock-M will have the great economic effect. The creating of customs warehouse, will save more than 3 million UAH per year, while it will also make a profit by offering storage services to other organizations. Research results can be used for increasing the level of inventory management system, optimization of inventory management processes and achieving higher economic results.