MAGAZINE №5(88) October 2018

AUTHOR MASLOV S.E. - Commercial Director, Prodimeks Ltd. (Moscow, Russia)

CATEGORY Optimization and mathematical modelling Inventory management

ABSTRACT

The article presents the results of numerical calculations carried out on the basis of the inventory management model previously developed and investigated by the author, namely, the model for determining the optimal point of delivery, considering the uncertainty of demand. As a criterion of efficiency, a criterion for minimizing integral costs is considered, considering the costs of surplus stocks and the costs of the lack of goods in the warehouse. As a law of distribution of a random volume of demand, a triangular distribution is considered, as one of the most applicable under conditions of insufficient statistical data. The considered economic-mathematical model allows to optimize the moment of delivery provided that risks are minimized, based on the statistical data on the demand for the goods for the previous period, or if such data are not available - use expert estimates. These data are sufficient for constructing probability distribution for a random quantity of demand.

The model allows to determine, with occasional demand, the day of delivery of a new consignment of goods in a certain volume, provided that the risks are minimized. In the case of a triangular distribution this optimization problem has an analytic solution counted by the formula. 

 Electronic version

 Keywords:  

• inventory management

• cost minimization

• delivery time

• uncertainty of demand

• triangular distribution