The Economic Order Quantity Model: Estimation of Stability and Accuracy
MAGAZINE №1 (78) February 2017
AUTHORS
TCHIROUKHIN V.A. - Cand.of Eng. Sc., Associate Professor, Department of Supply Chain Management National Research University Higher School of Economics (St. Petersburg, Russia)
CATEGORY Analytics and reviews Inventory management Optimization and mathematical modelling
ABSTRACT
The problem of the inventory management modern theory development is relevant and one of the priority directions of development of economic science to reduce logistics costs in the supply chain and to improve their efficiency.
The article deals with the model of economic order quantity (EOQ) and its place in the inventory management theory; the model base and corrected version which allows differing the accounting of costs related to the current stock storage have been analyzed; the approach for the assessment of the stability of EOQ model,
reflecting the deviation of total logistics costs of their optimal value depending on changes in the value of the order quantity have been proposed.
The accuracy of economic order quantity calculation dependson many factors: how many components of the costs are taken into account and their relationship, what version of the model is selected, but primarily on the accuracy of the parameters included in it; to evaluate the accuracy of the economic order quantity calculation
and, consequently, the total costs derived formulas to determine themean values and standard deviations of these values based on the linearization of distribution functions of random arguments; for approval of the proposed dependencies the calculations examples have been done; the possible directions of EOQ model further research have been generalized. In particular, there is need for a reasonable complexity of the model, its differentiation, without which it is impossible to bring the analytical dependences for practical applications.
Keywords:
Simulation parameters of logistics systems for the effects of the statistical instability of their functioning
MAGAZINE №1 (60) February 2014
AUTHOR VASILYEV A.M.
CATEGORY Optimization and economic-mathematical modeling Reliability and stability of the supply chain Uncertainty and risk in the supply chain
ABSTRACT
The paper presents an approach to modeling the process of the logistics system as a Queuing system with breaks, considered various options for determining the parameters of the operation of the logistics systems taking into account transients on a regular basis (breaks).
Keywords:
