Role and Place of Replenishment Strategies in Distribution Systems
MAGAZINE №4(87) August 2018
AUTHORS BARASHKOV A.V. - Postgraduate student, Department of Logistics and Supply Chain Management, National Research University Higher School of Economics (St.-Petersburg, Russia)
CATEGORY Distribution logistics Optimization and mathematical modelling Inventory management
ABSTRACT
For complex logistic systems, in particular distribution systems, the issues related to inventory replenishment are one of the key ones in the framework of logistics management. This article discusses the problems associated with the timing of orders and the quantities of orders. One of the most common approaches to solving this issue is the choice of a replenishment strategy. As shown in the article, the choice of replenishment strategies has a big impact on all aspects of the logistic system. It was shown that at the moment little attention is paid to the formation of modified (joint) stock replenishment strategies that would consider existing restrictions both on the part of goods and on the part of supply chains. The article describes the place and role of replenishment strategies in logistic systems, in particular in distribution systems. The main types of basic and joint replenishment strategies are also described, and current methods of strategies selection are surveyed.
According to the study conducted in this paper, it is possible to single out a tendency for companies to move from basic strategies to joint strategies; the tendency is closely related to the increase in degree of the world economy globalization and the following complication of existing supply chains, which necessitates a review of existing replenishment strategies. However, it was shown that, despite the existing trend associated with changing of replenishment strategies selection and switching to the use of joint strategies, the methodological framework underlying joint strategies is just beginning to form, which leads to restriction in their use.
Keywords:
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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