Abstract

The article provides a study of the issue of systematization of models of inventory management parameters at a modern manufacturing enterprise, analyzes the specification of dependence for the two most common strategies - with a fixed order size and a fixed order frequency, which take into account the relationship between current, insurance stocks and their deficit. In connection with the significant diversity of the concept of "stock management", an attempt was made to divide them into: those that reflect different approaches and those that make up different interpretations of the term "strategy". Peculiarities in approaches to calculating the parameters of inventory management models are highlighted: there are many of them, but mainly two are analyzed and applied. A generalized algorithm for creating a stock management model/strategy in the form of a stock control system scheme is provided. A review and comparison of the two inventory management models led the authors to the conclusion that they have mutual disadvantages and advantages, but both are suitable for use in practical calculations by modern business entities. Basic fixed order size inventory management models/ strategies can be used for practical results by considering the relationships and interactions between current and insurance stocks and the probability of shortages. A review and comparison of two inventory management models leads to the conclusion that they have mutual disadvantages and advantages. The model with RZ requires continuous accounting of the current stock in the warehouse. On the other hand, the model with FPZ between orders requires only periodic control of the stock quantity. The need for constant accounting of the stock in the model with FRZ can be considered as its main drawback. On the other hand, the lack of constant control over the current stock in the model with FRZ between orders is its main advantage over the first model. A corollary of the advantage of the model with FPZ between order intervals is that in the model with FRZ the maximum desired stock is always smaller than in the first model. This leads to savings in inventory holding costs due to the reduction of planes dealing with inventory, which in turn is an advantage of the FRZ model over the inter-order model.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.