Optimization Models for Determination of Characteristics for Multi-Item Inventory Control System within Industrial Enterprise
MAGAZINE №3 (80) June 2017
AUTHORS
LEVENTSOV V.A. - Cand. of Ec.Sc., Associate professor, Director, Graduate School of Industrial Management and Economics, Peter the Great Saint-Petersburg Polytechnic University (St. Petersburg, Russia)
KOBZEV V.V. - Doctor of Ec.Sc., Professor, Graduate School of Industrial Management and Economics, Peter the Great Saint-Petersburg Polytechnic University (St. Petersburg, Russia)
CATEGORY Inventory management Optimization and mathematical modelling
ABSTRACT
Urgency of the research is connected with the modern conditions of domestic industrial enterprises’ functioning process. Particularly, we are talking about complex structure of corresponding supply networks and processed material flows, increasing competition between enterprises as a result of goods market’s globalization, considerable share of logistic costs in production price, etc. Above-mentioned conditions determined appropriateness of definition for the problem concerning determination of characteristics for multi-item inventory control system which defines effectiveness of functioning for corresponding warehouse capacities. In the initial stages of the research the analysis of scientific works concerning research area has been performed, corresponding results have become the basis for the conclusion about limitation of existing tools for real-world inventory problems’ solving. During the next stage of the research basic optimization model for determination of characteristics for multi-item inventory control system has been created. The model describes situation when goods are dispatched with variable intensity described by uniform probabilistic distribution and are accepted as batches with certain size. At the next research stage mentioned model has been modified for taking into account the opportunity of ordering batches with variable size to make corresponding multi-item inventory control system more flexible. The distinctive feature of created models concerns two parameters being used in proposed inventory control system – minimal and maximal reorder points. Minimal reorder point defines the moment of batch ordering for certain inventory item, maximal reorder point is used for estimation of appropriateness for batch ordering for additional inventory items towards above-mentioned item being replenished on the basis of minimal reorder point. During the next stage of the research created optimization models have been realized in a practical example with application of «Solver» add-in of «Microsoft Excel» software. The results of models’ realization confirmed high practical importance of the tools created during the research.
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