The Methods for Estimation of Losses Caused by Flowing Capital Immobilization in Mining Companies’ Operational Resources Inventory
MAGAZINE №2 (79) April 2017
AUTHOR ELYASHEVICH I.P.
CATEGORY Industrial companies’ corporate logistics Inventory management Optimization and mathematical modelling
ABSTRACT
By controlling the various stock categories in real business, companies often have to take into account the large number of factors. It is necessary in order to provide these factors received as a result of parameters calculation, really make it possible to reduce costs and increase profits effectively. One such model involves the immobilization of accounting losses from the funds invested in stocks. Mining companies are the initial parts of the supply chain, which are the sources of origin of the material resources main flow. Material costs represent a significant share in the costs of raw materials produced, and most of them accounted for the purchase of consumables used in the production process. Therefore, operating resources require diverting significant amounts of funds from the mining companies turnover. Calculations were made taking into account various factors, reflecting the macroeconomic trends in Russian economy, such as inflation. To assess the opportunity costs, the statistics on bank deposits with fixed interest rates and interest capitalization was used. The potential savings evaluation was carried out using the economic order quantity model taking into account losses from the immobilization of capital into stocks. As a result of the calculations presented in the article, it is shown that taking into account losses from the capital immobilization into stocks and developing practical recommendations for optimizing the level of stock balance, may give significant cost savings and opportunities to increase profits. Released financial resources can be directed to the equipment modernization, which will help increase the return on assets and improve the productivity of mining companies work.
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On the problem of uniform product delivery to various customers with the solution of inventory management, routing and storage problems
MAGAZINE №2 (64) April 2015
AUTHOR VALEYEVA A.F., VALEYEV R.S., TARASOVA T.D., GAZIZOVA E.I.
CATEGORY Optimization and economic-mathematical modeling Transportation Inventory Management Warehouse Logistics
ABSTRACT
In this paper we consider the problem of a homogeneous product delivery to various customers in connection with the objectives of inventory management, transportation, and warehousing. The mathematical model and the general scheme of an algorithm for the assigned problem solution are introduced. A particular attention is paid to the problem of inventory management. At the same time we propose to combine the various models of this problem into a single subsystem: deterministic, probabilistic and simulation, which is a modification of the well-known model.
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Application of modified formula of economic order quantity definition to the alcohol producers
MAGAZINE №4 (63) August 2014
AUTHOR ELYASHEVICH I.P., MOYLENKO A.A., FROLOVA K.S.
CATEGORY Inventory management Corporate logistics industrial companies Optimization and economic-mathematical modeling
ABSTRACT
In this article the authors examine the possibility of adaptation and application of the modified formula of optimal (economic) order quantity definition taking into account the natural wastage on the example of plant using ethyl alcohol (ethanol) in productive activities. For many companies ethanol has a strategic importance in the procurement portfolio, because its application is a compulsory part of the production processes. The shortage of alcohol can lead to downtime and disruption of obligations to customers. Therefore, it is a significant issue to find the ways how to reduce natural losses of alcohol using theoretical and practical approaches of logistics and supply chain management.
The authors have analyzed the findings done by domestic and foreign authors in other fields of economy, where the natural wastages of material resources were due to such factors as shrinkage, adhesion and so on. As a result, it was made an attempt to adapt existing approaches to the volatile substances, such as an alcohol. In addition to proposals how to improve the existing inventory management system, a modified formula is viewed as an effective analytical tool to determine the economic feasibility of alcohol cellar repair, the use of which will allow the plant to reduce natural losses significantly in comparison with the traditional way of alcohol storage in metal drums.
In this paper the authors have analyzed twelve possible scenarios for the enterprise, which allowed compare the effectiveness of different solutions identified in the process of modified formula of economic order quantity application and recommend the most cost-effective decision in comparison with the existing situation.
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