MAGAZINE №5 (82) October 2017


CATEGORY Analysis in logistics and SCM Industrial companies’ corporate logistics Sourcing



To optimize the level of stocks of operating resources and the associated costs of procurement and maintenance, it becomes necessary to determine such differentiated indicators as the costs of performing for individual logistics functions and operations. The resources purchased by coal companies to ensure their production activities are quite diverse in terms of their absorption by various types of costs that differ in the way they are included in cost of goods sold and accounted.

The results of accounting conducted by all enterprises of the coal industry do not meet the goals and objectives of optimizing costs associated with procurement and stocks of operating resources. To determine the contribution of each category of purchased resources to a company's total costs and to assess possible savings reserves it is necessary to redistribute the initial data by activity, functional units of a company or resource categories using indicators that are traditionally referred to as cost application base.

The calculations are performed using various application bases for indirect costs, at which the ambiguous nature of the results obtained and their interpretation for making managerial decisions is shown. In addition, the ways of correlation-regression analysis apparatus usage were proposed for estimating the tightness of the connection between different categories of costs and for performing calculations for planning individual components of a company budget.

Based on the calculations given in the article it is concluded that usage of the traditional indirect costs application bases can lead to significant distortions of the analysis results and to negative consequences for the business profitability. Therefore, when managing the costs of operating resources purchasing at coal companies, it is necessary to conduct a value engineering analysis of the cost of goods sold for individual stock items for logistical functions and operations.

 Electronic version


MAGAZINE №3 (80) June 2017


CATEGORY  Industrial companies’ corporate logistics Inventory management Modern concepts and technologies in logistics and SCM


For mining enterprises, the need for spare parts and consumables used in the repair and operation of equipment depends on a number of factors. The influence degree of each of them is not unambiguous and has more probabilistic (stochastic) nature. Therefore, the equipment manufacturers’ recommendations, which are present in the technical documentation, are more general (universal) in nature. In circumstances where it is not possible to determine the actual need for operating resources unambiguously, mining companies are forced to form additional insurance stocks which are necessary to ensure an uninterrupted production process and maintain productivity at a given level. To reduce the negative impact of uncertainty of the environment, it is advisable to build relationships with suppliers based on VMI technology. The calculations were made taking into account the total costs associated with the organization of orders and supplies from suppliers and consumers. The proposed solutions were based on using the model of the optimal order size in supply chain, taking into account losses, both from immobilization of financial resources diverted to inventories, and from downtime of technological equipment. In the article the list of items of expenses that should be taken into account when calculating the total costs associated with purchases and stocks of operating resources of mining companies is proposed. As a result of calculations, it is shown that with the development of VMI relations between mining companies and their suppliers, it is possible to achieve a mutual cost reduction, while reducing inventory levels, by increasing transparency and certainty when planning the demand.

 Electronic version



Postal address:

125 319  Chernуakhovskogo str.16

phone/fax (495) 771 32 58

Working with authors: Levina Tamara Vladimirovna

mob. 8-962-965-48-54