Prospects and challenges in logistics management of international companies

Abstract

Inventory management models are aimed at establishing optimal batch sizes of resources that will be subsequently used in the production process. The author believes that the use of this model makes it possible to set order sizes not «manually» by employees of the supply department, but rely on an optimization economic and mathematical model. Considering that these calculations are given only for one item of purchased inventory items, we can conclude that expanding the use of this approach to other types of purchased parts and raw materials will contribute to greater savings in financial resources. The option proposed in the article helps to save the Company's expenses on the type of inventory under consideration by $244,4 per year compared to the original option (or by 1,3 %). Minimizing overall transportation costs will depend on optimal vehicle loading. Optimal loading of vehicles will minimize the number of vehicles involved in transportation, and therefore reduce the overall costs of delivering products to customers. The results of the work can be used to improve the Company's inventory management, as well as to solve problems of transport support for entering a new market (transport routing). The combination of ABC and XYZ analyzes will make it possible to have a visual representation of all inventories in the Company’s warehouse through the formation of standard groups of inventories, in relation to each of which the inventory management policy will be different. Considering the steady growth rate of the company's sales, the author recommends expanding the sales network by entering new markets, which could be, for example, regions of the Russian Federation.