MAGAZINE №1 (78) February 2017


CATEGORY  Analysis in logistics and SCM Controlling Inventory management Logistics service management Retail companies’ corporate logistics


Nowadays the development of retail chain stores format takes place. Some companies go own way, while others use benchmarking but all of them are interested in profitability maximization on condition that the overstock and out-of-stock levels are optimal. In the article the SCM project results are discussed. It is shown that it helped to reduce stock level by several times in a big federal retail company. After the successful solution of the problem there was detected the aberrant behavior of one of the «Perfect Order» indicator elements. It is the «Quality of the order implementation». This has brought to the extemporaneous short-run losses. In the article the alternative to this indicator is proposed and the realization is demonstrated.


MAGAZINE №6 (71) December 2015



Deputy Logistics Director, «Formula of Space»
Postgraduate student, Department of Information Economic & Management Systems, Institute of Industrial Economics and Management, Peter the Great St. Petersburg Polytechnic University (St. Petersburg, Russia)


CATEGORY   Logistics services Management  Optimization and economic-mathematical modeling  Corporate logistics retailers 




The concept of cross-functional coordination defines the interaction of business units, which gives the overall optimal results of the company. Difficulties associated with the various units interaction are typical for enterprises of different economy sectors. One of the most important issues in trade enterprises is the problem of marketing and logistics departments’ interaction in determining the optimum level of customer service. The problem is in searching a balance between the level of logistic service provided to consumers, and the level of total logistic costs associated with maintaining a defined level of service. The purpose of this study is to develop a mathematical optimization model of logistic service of trade enterprises. It is assumed that logistic service of the enterprise has a number of components (indicators) of service, each of which has different variants (possible values). Implementation of the service component in a particular variant affects the values of revenue and total costs of the enterprise. It is necessary to find such combination of service components variants, which will provide the maximum profit for trade enterprise. To achieve this goal the analysis of the trade enterprise external environment is carried out; conceptual and structural optimization models are developed. On their basis the mathematical model of linear programming (LP) is developed. The LP model is tested on a numerical example, so a tabular model is also created. For the stage-by-stage solution of the optimization problem, the LP model is transformed to dynamic programming model. The limits of models applicability are defined. In the study a mathematical model of linear programming with Boolean variables, which provides finding optimal variants of logistic service components and complies with the restrictions, is created. As an alternative, a dynamic programming model is developed. An important advantage of this model is the possibility, during the phased decision-making, to implement a satisfactory solution, from the decision-maker point of view, and not mathematically optimal solution. The progress and results of the study show that total logistic costs, which are the main component of models, require detailing, and the process of their formation - definition of mathematical ratios, with the aim of developing integrated model for determining the optimal level of service and costs of subsystems of the trade enterprise logistics system.


Thursday, 12 November 2015 16:36

Logistics support of medical equipment handling

MAGAZINE №5 (70) October 2015




CATEGORY  Logistics services Management Reverse logistics 


The market of medical equipment presented in most cases by foreign-made goods is growing fast. It requires considering the peculiarities of logistics services under the conditions of the medical equipment utilization by medical preventive institutions. The problem is particularly acute for high-tech medical equipment sector. It is shown that the fundamental principles of the order cycle management are unchanged in the case of reverse logistics as well. However the specific material flow managed will lengthen order cycle. Moreover it will have the impact on the complexity and workload of logistics operations. The traditional definition of transactional and post transactional services, which was reflected in the choice of the set of indicators, requires a thorough application. It is especially true for the performance evaluation of services splitted in time-horizon.


Friday, 12 December 2014 12:11

Methods of logistics service evaluation

MAGAZINE №3 (62) June 2014


CATEGORY Logistics services Management Controlling 


Strategic role of logistics services for companies is determined by direct impact on the customer base of the company, both existing customers and potential ones. It should be recognized that there is no consensus on understanding of the logistics services essence among academic community and practices, but it was revealed the common approach to the way of the level of logistics service determination, which brings together representatives of all parties.

The paper considers two approaches of customer service decomposition into elements and components, as well, some methods to assess logistics service that can be used in business – environment are provided in the article. On the base of materials reviewed, it is proposed the refined procedure of level of logistics services assessment.



MAGAZINE №5 2014


CATEGORY Logistics services Management 


It is difficult to imagine operations of companies without understanding of how to manage services accomplishment, especially logistics services. Policy of customer service management is determined by the interaction of two key departments of the company, one of which (Marketing) is responsible for image-building of product and marketer choice, the other of which (Logistics) is accountable for supply of goods to customer and provision of logistics services with logistics 7R ensuring optimal conditions for the functioning of supply chains.

The article presents a critical analysis of various points of view on different levels strategies, showing their interconnection within the company. Special focus is paid to the relation between the basic corporate strategies and functional strategies of the company (marketing strategies and logistics strategies). As well, the ways of their translation into the logistics activities in the field of customer service is analyzed.

The paper critically examines 21 different sources that meet purposes mentioned above. Critical analysis of marketing and logistics interference, various levels and types of strategies is intended to derive linkage between existing findings supporting the reflection of the strategic company directions in customer service policy in terms of logistics.

In the article it is revealed the benefits of evolving a strategic approach of logistics services management for clients and suppliers. It is proposed to begin approach elaboration from the planning of possible potential strategies of company’s development. That is why remarkable attention is paid to the consideration of basic corporate and functional strategies, defining the possibility of their joint implementation in the company. Detected logical link between corporate, marketing and logistics strategies allows us to specify prior steps and common activities for customer service policy development within the logistics department of the company.




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