Inventory Management Issues Research Articles

Measuring the impact of automated dispensing cabinets implementation on data and inventory management of human normal immunoglobulin in an acute teaching hospital: A pre- and post- intervention study

BackgroundHuman Normal Immunoglobulin (HNIg) is a complex plasma-derived blood product used to treat a variety of medical conditions. Global supply problems have increased focus on HNIg stewardship, including mandatory recording of HNIg usage on the National Immunoglobulin Database (NIgD). Local departmental audits identified significant inconsistencies in data uploaded to NIgD. Inventory management issues caused a number of stock losses in the last financial year. A paper-based HNIg batch number recording system was replaced with the use of Automated Dispensing Cabinets (ADCs), which generated an electronic batch number report, with matching fields required for electronic upload to NIgD. AimTo measure the impact of ADC implementation on the accuracy of data uploaded to NIgD, HNIg stock control and staff time associated with processes of HNIg data and inventory management. MethodThree months of pre- and post-implementation HNIg dispensing data was compared to the data uploaded to the NIgD for discrepancies. Inventory reports were used to identify unexplained stock adjustments. Time and motion methods were used to quantify staff time associated with HNIg activities. ResultsPre-implementation: 20.7 % (3762.5 g/18,217 g) of HNIg by volume (23.7 % of dispensing episodes; 66/279) were inaccurately uploaded or absent on the NIgD and three stock adjustments were made (loss of >£15 k). Post-implementation: 12 % (2325 g/19,347 g) of HNIg by volume (10.8 % of dispensing episodes; 31/286) were inaccurately uploaded or absent on the NIgD and zero stock adjustments were observed; Mean time for dispensing per HNIg prescription reduced from 17 min to 8 min; Time spent uploading data to NIgD per month reduced from 5 h to 1.75 h. Discussion/ConclusionThe use of ADCs improved accuracy of NIgD data upload. Following implementation direct observations have cited unregistered or finished patient episodes, dispensing procedural compliance, and user familiarity with the system as common reasons for incomplete data uploads to NIgD. The new ADC process had consequences of forcing dispensing procedure compliance to improve uploads, whilst reducing dispensing times. It led to improved stock control and removed upload burden from dispensers. ADC stock discrepancy alerts allowed staff to proactively resolve discrepancies in real time. Time taken for additional processes to support management of stocks in ADCs, including monthly stock cycle counts, were important considerations for implementation. The key advantage of using ADC batch number reports is the ability to upload as a single monthly batch without having to manually access individual patient records on the NIgD. It facilitates early identification of failed upload attempts and supports resolution of stock discrepancies.

Rancangan Aplikasi Inventory Barang Pada Babycom Berbasis Web Menggunakan Metode Waterfall

Babycom, a company specializing in the sale of imported baby sandals, faces challenges in managing its inventory due to rapid sales growth, particularly through the Tiktok Shop platform. Manual inventory management is prone to data inaccuracies, monitoring difficulties, and inefficient resource utilization. To address these issues, this research proposes the development of a web-based inventory management application using the waterfall development method. This approach is chosen for its ability to provide structured guidance from needs analysis to maintenance, tailored to the complexity of Babycom's requirements. It is anticipated that this design will offer an effective solution to inventory management issues, resulting in improved operational efficiency, data accuracy, and ease of information access for the company.

EOQ Optimization Revolutionizes Inventory Management, Delivering Cost Savings Globally

Efficient inventory management is crucial for companies to minimize costs while ensuring adequate supply to meet demand. PT Samawa Tirta Alam, a bottled sweet drinking water company, faces significant inventory management issues, notably with refined sugar raw materials. High transportation costs and fluctuating demand contribute to excessive inventory accumulation and increased storage costs, necessitating an optimization strategy. This study implements the Economic Order Quantity (EOQ) method to address these challenges. Through a mixed-method approach, qualitative data were gathered via observations and interviews, while quantitative analysis utilized historical data to calculate optimal order quantities, frequencies, safety stock levels, and reorder points. Results demonstrate substantial cost savings, with optimal order quantities determined, reducing order frequencies from 12 to 2 times per year, and minimizing safety stock levels. The findings underscore the effectiveness of the EOQ method in enhancing cost-effectiveness and operational performance in raw material inventory management for similar companies. Highlights: 1. Cost Efficiency: EOQ method reduces total inventory costs effectively.2. Operational Precision: Minimizing safety stock enhances operational efficiency.3. Strategic Insight: Integrated approach provides practical solutions for inventory management challenges. Keywords: Inventory Management, Economic Order Quantity (EOQ), Cost Optimization, Raw Materials, Transportation Costs

The Influence of Inventory Costs on Product Sales: An Analysis in the Global Sneaker Market

The pandemic has greatly impacted the global athletic shoe market, leading to supply chain instability and inventory management challenges. Taking the global athletic shoe market as an example, this study delves into inventory management issues from three aspects: store operations, price changes, and supply chain modules, and analyzes Nike's data in China and Vietnam in detail. The epidemic led to challenges, such as declining market demand, production disruptions, and supply chain problems, which affected the company's profitability. By analyzing inventory management strategies, this study proposes two key recommendations to help firms cope with uncertainty and improve inventory management efficiency. First, firms are advised to maintain moderate inventories to respond to changes in market demand flexibly. Second, inventory levels should be increased moderately through marketing programs and promotional activities to improve product competitiveness. These recommendations are intended to help athletic footwear and apparel companies meet the challenges of reducing inventory costs, increasing product sales, and ultimately achieving inventory management success during the epidemic.

Research on an Optimal Maintenance and Inventory Model Based on Carbon Tax Policy

The equipment in a factory will gradually deteriorate during production, leading to the production of defective products. Without appropriate maintenance, the defect rate will increase over time. Consequently, the production cost will rise, the inventory quality will be affected, the profit will decrease, and the risk of carbon emissions will increase, leading to more customer complaints and damaging the corporate image. In addition to focusing on preventive maintenance to ensure the quality of products, companies should also take carbon emissions into consideration. Furthermore, the frequency of maintenance must be carefully considered, as both carbon emissions and maintenance costs will increase if the frequency is too high; conversely, if the maintenance frequency is too low or non-existent, the defect rate may increase cumulatively, or production may be suspended due to equipment failure. Therefore, this research explores preventive maintenance and inventory management issues within an imperfect production system and develops an extended economic production quantity model that incorporates defective products as well as taking carbon tax and preventive maintenance into consideration. The main purpose is to determine the optimal maintenance frequency, production, and replenishment cycle length, so as to maximize the total profit under the carbon tax policy. This study demonstrates a computing process with relatively impractical product data based on the actual business situation of a disposable diaper manufacturer. Furthermore, a sensitivity analysis is implemented to the model parameters in the proposed model. The managemental insights are illustrated based on the results of theoretical analysis to provide a reference to policy makers during decision making, hence, to secure the sustainability and green transitions of corporates. The results of this study not only help to reduce environmental impact but can also improve the competitiveness and sustainable development of enterprises.

АВТОМАТИЗИРОВАННАЯ СИСТЕМА УПРАВЛЕНИЯ ЗАПАСАМИ МАШИНОСТРОИТЕЛЬНОГО ПРЕДПРИЯТИЯ

The article describes current issues of inventory management at industrial enterprises. The developed algorithms for an automated inventory management system for a machine-building enterprise, the implementation of which will minimize the costs of storing and organizing inventories, are presented.

Initial observations on the impact of implementation of automated dispensing cabinets for Human Normal Immunoglobulin on data and inventory management

Abstract Introduction Human Normal Immunoglobulin (HNIg) is a plasma-derived blood product used to treat a variety of diseases. Global supply problems1 have increased focus on HNIg stewardship, including mandatory recording of HNIg usage on the National Immunoglobulin Database2 (NIgD). This is a dispensary-based process and determines HNIg stock allocation and remuneration. Departmental audits identified significant delays and inconsistencies in data uploaded to NIgD. Inventory management issues caused a number of stock losses in the last financial year. A paper-based HNIg recording system was replaced with the use of Automated Dispensing Cabinets (ADCs). This enabled the development of an electronic ADC batch number report, from dispensing data, that matched fields required for electronic upload to NIgD, making the process more robust and proficient. Aim To measure the impact of implementation of ADCs for HNIg on data and inventory management. Objectives included identifying: Percentage of HNIg dispensed uploaded accurately to NIgD within one month of dispensing; Number of HNIg stock adjustments; Staff time required for activities associated with HNIg management. Methods Approval was obtained from the Trust Pharmacy Research and Audit Committee. The need for ethical submission was waived. Pre-implementation (May-July 2022) and post-implementation (February-April 2023) HNIg dispensing data was compared to the data uploaded to the NIgD for discrepancies. Electronic inventory reports were generated to identify the number of unexplained stock adjustments made. Time and motion methods were used to observe staff time associated with dispensing, stock management of HNIg in ADCs and data upload activities. Results Pre-implementation: 20.7% (3762.5g/18,217g) of HNIg (23.7% of dispensing episodes; 66/279) were inaccurately uploaded or absent on the NIgD and three stock adjustments were made. Post-implementation: 12% (2325g/19,347g) of HNIg (10.8% of dispensing episodes; 31/286) were inaccurately uploaded or absent on the NIgD and zero stock adjustments were observed; Mean time for dispensing HNIg reduced from 17 minutes/prescription to 8 minutes/prescription; Time spent uploading data to NIgD reduced from 5 hours to 1.75 hours/month. Discussion/Conclusion The use of ADCs has improved accuracy and completeness of data upload to NIgD. Direct observations have cited unregistered or finished patient episodes, dispensing procedural compliance, and user familiarity with the system as common reasons for incomplete data uploads to NIgD. Training is vital in assuring data quality and completeness. The new ADC process had unexpected consequences of forcing dispensing procedure compliance to improve uploads, whilst reducing dispensing times. It led to improved stock control and removed upload burden from dispensers. ADC stock discrepancy alerts allowed staff to proactively resolve discrepancies in real time. Time taken for additional processes to support management of stocks in ADCs, including monthly cycle counts, were important considerations for implementation. The key advantage of using ADC batch number reports is being able to upload as a single batch monthly without having to log into individual patient records on the system. It facilitates early identification of failed upload attempts, supporting resolution. Further work focusing on fully aligning naming conventions to NIgD should deliver additional efficiencies; minimising manipulations currently required prior to upload.

Managing Carbon Foot Prints in Supply Chain for Imperfect Quality Items

Producing 100% high-quality items is a challenging task in today’s era, which often results in the delivery of defective products. Therefore, inspecting the lot becomes a necessity. This paper investigates the impact of environmental concerns on the inventory model by incorporating fuel costs and emission taxes. The objective of the study is to minimize the expected total cost and determine the optimal order quantity. The study includes a numerical example with sensitivity analysis to determine the model’s robustness. The findings of the study indicate that minimizing emissions also reduces the expected total cost. The paper highlights the significance of considering environmental concerns in inventory management. The study highlights the importance of addressing environmental issues in inventory management and provides a framework for minimizing costs while considering the impact on the environment.

Invasive Plants of Russia: Inventory Results, Distribution Features and Management Issues

Globalization, expansion of trade relations, inter- and intra-continental population movements, development of transport links between countries have led to the active settlement of many plant species outside their natural ranges. Among such plants, a group of invasive species stands out, whose distribution has serious environmental, economic and social consequences. The article contains information about the results of the inventory of invasive vascular plant species growing in the Russian Federation, as well as an overview of the actions taken in the country to manage invasive plant species. Currently, there are 584 invasive species of vascular plants in Russia, of which the most common are Acer negundo, Echinocystis lobata and Erigeron canadensis. It has to be stated that until now there are no legislative acts regulating the policy in the field of invasive species (the exception is the legal regulation of phytocarantin), as well as the national strategy for alien species in Russia. Effective management of biological invasions can work if the general public is aware of the adverse effects of biological invasions. Given that the number of specialists is always limited, it is necessary to take into account the role of the general population in the management of invasive species.

From Fabric Consumption to Warehouse Optimization Unravelling the Strategic Journey of Gul Ahmed

This case study explores the challenges faced by Gul Ahmed, a leading textile company, in managing its raw material and finished goods inventory. The company encountered issues related to excess fabric consumption, resulting in surplus inventory and limited warehouse space. Additionally, the rejection of garments during the manufacturing process added to the inventory dilemma. The company's management team, realizing the need for a sustainable solution, convened a meeting to discuss potential strategies to address the storage and inventory management issues. This case study highlights the critical importance of efficient inventory management, space utilization, and the need for proactive planning to mitigate future threats. The findings emphasize the significance of analysing and optimizing raw material consumption and devising strategies for utilizing excess inventory, ensuring long-term profitability and sustainability for the company.

Technology Adoption in Food Supply Chain Management in Developing Countries: A Review

Food loss and waste is one of the major reasons for global food insecurity. Food losses occur at all stages of the food supply chain, including agricultural produce, harvesting, transport, storage, and processing. Food loss and waste are exacerbated by a lack of adequate and effective food supply chain management (FSCM). An effective food supply chain (FSC) includes designing processing and distribution centres, managing the cold chain, and designing reverse logistics. It also includes functions like allocating warehouse storage capacity, vehicle routing and material flow issues, delivery scheduling, and inventory management issues. Adoption of new information technology such as big data and Internet of Things can improve FSC performance and have a significant impact on reducing food waste and loss. An effective system for sharing information can enhance FCC performance, and intelligence in automated retail ordering can prevent food spoilage, while machine learning, and blockchain can improve FSC traceability. However, there are several obstacles to the use of technology in the FSC, particularly in developing countries. These are classified as technical, financial, social, operational, educational, and governmental. This paper provides an in-depth review of the existing literature on the FSC, technology applications in improving FSCM, key challenges associated with technology adoption, and interventions that may help overcome these challenges. It adds to the existing literature on FSCM, especially on issues related to technology adoption in the FSC by developing countries, and is a useful resource for students, researchers and food supply chain professionals.

Dealing with hotel customer stealing practices: a managerial perspective

PurposeThe incidents of hotel theft constitute a significant cause of concern for the hotel industry. Such incidents result in substantial financial implications, inventory management issues and complications in finding exact replacements. This study, therefore, investigates customer stealing practices in Indian hotel industry.Design/methodology/approachA structured email interview was conducted with twenty-five senior hotel managers. The data were analyzed by adopting a coding technique using inductive content analysis.FindingsThe results were discussed under seven headings-extent of such stealing incidents, financial consequences of such practices, strategies to prevent such instances and, finally, how to deal with customers when caught stealing.Research limitations/implicationsThis study highlighted themes related to the profile of customers involved in stealing practices, motives, consequences and strategies required to manage such customers. Future studies can focus on restaurants, airlines, airports and tourist attractions to identify strategies and best practices for preventing such practices.Practical implicationsThe study's findings have tremendous potential for the hospitality industry. Dealing with customers’ stealing practices is a very sensitive issue. Furthermore, hotels bear lots of expenses if the policy for tackling the problem still needs to be implemented. Furthermore, if not handled professionally, a lack of effective guidelines can cause embarrassment for managers.Social implicationsThe study has the potential to raise awareness among the members of society to be more responsible toward hotel property.Originality/valueThis study extends to the limited literature on hotel guests' theft. The comprehensive analysis of the themes generated from an interview with the senior managers of the hotel industry provides a unique insight into the nature of the problem. The solutions offered in this study are an original contribution to the literature.

INVENTORY MANAGEMENT AS AN EFFICIENCY IMPROVEMENT FACTOR ACTIVITIES OF A TRADE ORGANIZATION

The uninterrupted process of production and sale of products largely depends on the availability of stocks of the enterprise. It is with the help of stocks that the continuity of production and sales is ensured, since they are a link in the process of movement of goods from the manufacturer to the consumer. The art of inventory management is that it is necessary to find a balance between the availability of stocks, on the one hand, and financial costs, on the other hand. Price, assortment, quality are the main indicators of the competitiveness of products. Suppliers have a great influence on the formation of the above-mentioned indicators. Choosing a supplier is one of the important tasks of logistics activities, since the success of the company in providing consumers with the necessary goods and services depends on how well suppliers fulfill their obligations. That is why the issues of inventory management and the right choice of suppliers are very relevant. This article discusses the concepts of inventory management, provides a comparative analysis of existing management systems, develops recommendations for their implementation for various enterprises, justifies the economic feasibility of automation of inventory accounting. The article also provides evaluation methods, including mathematical tools of the system approach, and analyzes the criteria for selecting suppliers.

A planning model for repairable spare part supply chain considering stochastic demand and backorder: an empirical investigation

Today, improving machine availability is vital for industries to compete in the global market. Spare parts play an essential role in the maintenance and repair of equipment, but planning an extensive network in strategic industries with various spare parts can be very challenging due to the existence of different decision factors. The spare parts supply chain deals with inventory management issues, which necessitates considering the related decisions such as determining the stock level and order quantity. Moreover, demand uncertainty and long supply time make decision-making more complex. This paper presents a repair and supply planning model for repairable spare parts while considering a modified formulation of demand uncertainty to minimize costs. The model determines the optimal stock level, lateral transshipment, assignment of spare part orders to suppliers, equipment to repair centers, and the number of intervals over the planning horizon used in demand estimation. This research contributes to the literature by integrating recent decisions, using demand approximation by piecewise linearization, and considering backorder in warehouses evaluated by queuing models. A hybrid approach, including heuristic and genetic algorithms, is used to optimize the model using data from an oil company. The results show that using piecewise linearization and integrated repair and supply planning decisions optimizes costs and improves performance. Also, the availability is affected by the demand estimation, which necessitates precision prediction.

MANAJEMEN PERSEDIAAN BAHAN BAKU BAWANG PUTIH GORENG PADA UKM SOFIE LOCALFOOD DI KOTA PALU

Garlic Sofie Localfood is one of the businesses engaged in agro-industry that utilizes garlic as the main raw material. Sofie Localfood's fried garlic products still have difficulty in regulating the production process, due to delays in ordering raw materials, so SMEs buy raw materials elsewhere and require more costs and sometimes the raw materials are not as expected. Raw materials are one of the most important production factors because they support the smooth running of the production process. This study aims to find out how much economic raw material purchases (EOQ) for the supply of raw materials to SMEs Sofie Localfood, to find out how much safety stock (Safety Stock) to SMEs Sofie Localfood, to find out when is the right time for SMEs Sofie Localfood to do reordering (ROP) of raw material inventory, and to find out the total inventory cost (TIC) of raw materials at UKM Sofie Localfood, This research was conducted at UKM Sofie Localfood on Jalan Zebra IV, Lorong 1 No. 5 Palu City. The selection of this location was done purposively, with the consideration that Sofie Localfood is one of the businesses that produces garlic as the main raw material for making tempeh in Palu City. This research was conducted from April to June 2021. Respondents are owners and employees of UKM Sofie Localfood who were selected as sources of information in the study, the total number of respondents is 3 people. Based on data to be obtained from Sofie Localfood's business regarding raw material inventory management issues tempe, the data analysis used is Economic Order Quantity (EOQ), Safety Stock (Safety Stock), reorder (ROP) and total inventory cost (TIC). The results of this study indicate that the management of raw material inventory at SMEs Sofie localfood using the (Economic Order Quantity) method in JanuaryDecember 2020 an average of 31.17 kg/month. Safety stock (Safety Stock) of raw materials that is always available at UKM Sofie Localfood is 14.92 kg/month. The reorder point (reorder point) that SMEs Sofie Localfood must make in April-June 2021 is an average of 77.26 kg/month. The total cost of raw material inventory for garlic in the UKM Sofie Localfood is an average of Rp.58.157.86/month.

Working Capital Management and Corporate Performance of Quoted Consumer Goods Sector in Nigeria: A Panel Data Approach

This paper aimed at investigating the impact of working capital management (WCM) on corporate performance of quoted consumer goods sector in Nigeria. Specifically, the paper examined the impact of cash conversion cycle (CCC), current ratio (CUR), quick ratio (QUR), asset turnover ratio (ATR), Average Payment Period (APP), Average Collection Period (ACP), and Inventory Collection period (ICP) on return on asset (ROA) of listed Nigerian Consumer goods sector firms from 2009 to 2018 covering 120 cross-sectional units. To ensure that the findings of the study are reliable, accurate, and valid, the study was further subjected to diagnostic tests using the Lagrange Multiplier Tests for Random Effects, Hausman test, and the cross-sectional dependence test. Accordingly, the Hausman test supports the Random Effect Model (REM) while the cross-sectional dependence test revealed that the variables of each company is unique and are independent of those of other companies in the sample. Findings emanating from the REM confirmed a mixed relationship between WCM and ROA. Specifically, the study found that managers can achieve high profitability if it addresses all inventory management issues since quick ratio and inventory conversion period exerted negative insignificant impact on firm performance. Again, the study found that the current ratio, quick ratio, and asset turnover ratio are the main determinants of corporate performance. Hence, the study concludes that WCM is the most efficient way firms can achieve outstanding success. To this end this paper recommends that if firms in the Nigerian Consumer goods sector firms must achieve their core objective of maximizing high returns and minimizing risk, they must pay full consideration on current ratio, quick ratio, and asset turnover ratio.

ХАЛҚАРО СТАНДАРТЛАР АСОСИДА ТОВАР-МОДДИЙ ЗАХИРАЛАР ҲИСОБИНИ ТАКОМИЛЛАШТИРИШ ЙЎНАЛИШЛАРИ

THIS ARTICLE HIGHLIGHTS THE ISSUES OF INVENTORY MANAGEMENT AND ORGANIZATION OF THEIR ACCOUNTING. AS A RESULT OF THE RESEARCH, RECOMMENDATIONS WERE DEVELOPED TO IMPROVE THE ACCOUNTING OF INVENTORIES BASED ON INTERNATIONAL STANDARDS.

Exploiting Random Lead Times for Significant Inventory Cost Savings

Taking Advantage of the Lead Time Randomness in Supply Chains Randomness in lead times is a major—and increasingly important—issue of inventory management, as a variety of risk factors motivate companies to diversify their supply sources and rely on distributed networks of suppliers. In “Exploiting Random Lead Times for Significant Inventory Cost Savings,” A. Stolyar and Q. Wang show that, surprisingly, instead of being a damaging factor to supply chain performance, randomness may be harnessed for potentially very substantial reductions of inventory costs. Specifically, the theoretical analysis and simulation results in the paper demonstrate that, under certain conditions, appropriately designed novel policies can significantly outperform the conventional base stock policies.

Optimization of Inventory Management to Prevent Drug Shortages in the Hospital Supply Chain

Drug shortage is always a critical issue of inventory management in healthcare systems since it potentially invokes several negative impacts. In supply chain management, optimization goes hand-in-hand with inventory control to address several issues of the supply, management, and use of drugs. However, it is difficult to determine a shortage situation in a hospital due to multiple unpredictable reasons, such as manufacturing problems, supply and demand issues, and raw material problems. To avoid the shortage problem in a hospital, efficient inventory management is required to operate the system in a sustainable way and maximize the profit of the organization in the Hospital Supply Chain (HSC). In this work, we study a drug refilling optimization problem, a general model for drug inventory management in a hospital. We then investigate a Deep Reinforcement Learning (DRL) model to address this problem under an online solution that can automatically make a drug refilling decision in order to prevent a drug shortage. We further present a numerical result to verify the performance of the proposed algorithm, which outperforms the baselines (e.g., over-provisioning, ski-rental, and max-min) in terms of the refilling cost and the shortage rate.

ВПЛИВ МАРКЕТИНГОВОЇ ПОЛІТИКИ НА ОПТИМІЗАЦІЮ ПЛАНУВАННЯ РОБОТИ ПОСТАЧАЛЬНИЦЬКОЇ ФІРМИ В ЛАНЦЮЗІ ПОСТАВОК

As is known, the problem of determining economically justified volumes of supplies in the theory and practice of logistics management plays a key role in ensuring the efficient operation of both individual enterprises and supply chains. Logistics, which is the science of effective management of material, information and financial flows in the field of production and circulation, is closely related to such sections of operations research as mathematical programming, inventory management theory, schedule theory, queuing theory and more. Many tasks of logistics are directly related to the optimal management of stocks of raw materials, semi-finished and finished products, as well as the construction of an optimal schedule for delivery of finished products to points of consumption with the participation of trunk transport. Thus, since the issues of optimal inventory management are of paramount importance in logistics, it means the importance of inventory theory in the design and operation of various logistics systems. The article is devoted to substantiation of expediency and efficiency of additional costs of a supply firm for advertisement with the aim to its profit increasing on the fixed planning horizon under supposition that the expected demand at point of destination may be controlled by firm. For this problem solving the modification of classical Wilson’s model from inventory control theory is used to maximize the total profit of firm for sailing the good, taking into account ordering, delivery and storage of good costs on the planning horizon and additional cost for advertisement of good. It is assumed that buying/sailing prices of good are known, as well as daily expenses for storage of good at warehouse. It is supposed also that demand for the good is an increasing function of advertisement costs. The case of linear dependence of demand on advertisement cost is studied in details. For this particular case the optimal value of ordering party of good and optimal value of cost for advertisement are found in evident form. It is shown also that above optimization model may be generalized for the case of several kinds of good. Restrictions on the capacity of the warehouse for storage of goods and restrictions on the financial resources available to the company allocated for advertising activities are taken into account. A convex optimization problem is obtained, which can be solved numerically using the Excel application package.