MAGAZINE  №1 (90) February 2019


CATEGORY  Optimization and mathematical modelling Inventory management


Stock-out – an inventory shortage, is a situation which periodically or constantly retailers, networks of retail trade (and other commercial organizations connected with replenishment and stocks expenditure) face worldwide. Numerous publications of foreign authors proposing practical solutions for such organizations is a vivid example of it. Some retail chain stores and enterprises even issue guidebooks to handle stock-out.
In domestic literature, there are publications describing various stock-out forms, as well as recommendations associated with the decision-making on them. Nevertheless, the experience connected with the prevention and struggle against the stock-out consequences is uncoordinated, lacks common structure, and sequence of actions. An enterprise facing stock-out receives only fragmentary data on the nature of this phenomenon, necessary instruments of influence and the sequence of actions.
To give an idea of the existing spectrum of analytical approaches and possible practical solutions, is one of the main objectives of this article. At the same time, issues related directly to determining the stock volume and other parameters of a company's inventory management system are considered. Based on the analysis of the issues described above, a possible algorithm of actions an organization can follow in the event of a stock-out, is presented. The possible development of an approach to manage the most complex stock-out case – «with a lost demand» is also considered.

 Electronic version


Published in Inventory management

MAGAZINE №6 (83) December 2017


CATEGORY  Optimization and mathematical modelling Inventory management


The article deals with some aspects of systematization and classification of various inventory management models with an account for stock-out. The model with "loss of requisition " most rarely encountered in the theory of inventory management, but indisputably relevant because of its practical value, is discussed. The urgency of the stock-out problem in the modern world economy is accounted for by the information given in the article about the losses caused by the stock-out. Applying analytical approach when solving the stock-out problem can serve as a tool that will help solve long-standing problems of stock-out costs reduction. In this paper the calculation examples for key variants of stock-out models are given, and, the model with "lost demand" and its connection with a static problem is of particular interest. Calculation results comparison revealed the fundamental difference in models, which allowed to avoid mixing models that is often encountered in the literature. The result obtained during the research is the expansion of the approach to classification, and consequently, the opportunity to attract additional tools of the stock management theory to solve the stock-out problem, which ultimately aims at optimizing total logistics costs.

 Electronic version


MAGAZINE №6 (77) December 2016



POLITOVA T.Y. - Reverse Logistics Manager, Tehnosila (Moscow, Russia)

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


Despite the technologies development  focused on material flow management improvement in retail, the problem of poor on-shelf availability (OSA) is still the main challenge for both producers and retailers. The difficulty to increase the availability of goods is associated with a lack of clear understanding of its low value causes. On the one hand, current out-of-stock causes’ groupings reveal a different degree of problem elaboration in the literature. On the other hand, they help to clarify a general viewpoint on the problem in the academic sphere and to explore the factors influencing OSA.

OSA may differ significantly for different categories of goods, variously affecting retailer performance. Management of goods with limited shelf life, i.e. “Fresh”, is the most problematic from material flow management standpoint. Poor OSA causes for fresh food are grouped in the article. The classification takes into account the characteristics of goods with limited shelf life and the specifics of a retailer that use automatic replenishment stores’ system. This classification aims to be the first step in the “Fresh” on-shelf availability management. 



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