Abstract
Estimation of the optimal size of order is one of the key tasks in determining the parameters of the urban freight restocking system. The existing analytical models and methods are considering each technology separately and they do not compare the Economic Order Quantity (EOQ) and Justin-tme (JIT) restocking technologies. The purpose of this research was to evaluate efficiency of the JIT and EOQ restocking technologies. The research would help in selecting the delivery model, analyzing functioning of existing JIT and EOQ models. The article presents an approach to determining the comparison in organizing supplies to the retailer. For this, the two supply models were compared. The Just-in-Time model is characterised by costs that are spend on transportation. The Economic Order Quantity model includes costs of transportation and storage in a warehouse. After calculations, application of the Just-in-Time model in the given conditions was determined.
Highlights
The economic order quantity (EOQ) determines the replenishment frequency for strategies that regulate size of order and its frequency [1]
The proposed mathematical models were tested on a real example
The Just-in-Time (JIT) model is characterised by costs that are spend on transportation
Summary
The economic order quantity (EOQ) determines the replenishment frequency for strategies that regulate size of order and its frequency [1]. In this case, the estimation of EOQ is accompanied by caculation of the safety stock. Conventional approaches imply a separate definition of these indicators, which can lead to adoption of their erroneous values. The reason for this is interdependence of the order size and safety stock. Most methods for determining the EOQ are based on the lack of influence of orders size on replenishment costs
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