The SCOR Framework as a Basis for the Model of the Company’s Logistics Cost and Service Level Optimization
MAGAZINE №4 (99) August 2020
AUTHORS RYBAKOV D.S.
CATEGORY Logistics service management Optimization and mathematical modelling Supply chain planning
ABSTRACT
The current state of management practice is characterized by the presence of a demand to improve the efficiency and effectiveness of logistics processes, on the one hand, and an insufficient level of application of one of the main tools for achieving this goal – optimization modeling, on the other. One of the main reasons of this phenomenon is the lack of a universal basis of the proposed optimization models that does not allow them to be applied widely enough in companies with different business process structures. The aim of the research was to develop a universal, based on the SCOR framework, integrated model for optimizing the logistics service of an enterprise. During the research process, the overview of the developed models for logistics service optimization, the analysis of the limitations of the logistics system optimization models, the adaptation of the map of SCOR process metrics have been carried out; the influence diagram of the optimization model components has been developed; the models of cost optimization and logistics service optimization have been combined into a single integrated optimization model; an algorithm for the optimal solution search has been elaborated; the implementation of the model and algorithm as a program for the solution search has been introduced. As a result, the integrated optimization model based on the components of the SCOR model has been developed, combining the cost and service level optimization models, using the outputs of one model as inputs for another when searching for an optimal solution. Building the optimization model on the basis of the SCOR model components provides universal character of its application, taking into account the set of costs, arising in a logistics system, including indirect ones, and the set of metrics of logistics service reflects the links between functional departments, the ability to maintain a level of total costs at the efficiency frontier, achieving the goal of the profit maximization at the same time, provides a link between the tactical and operational levels of decision-making, which together leads to an increase in the reasonableness and quality of management decisions, and creates prerequisites for the overall optimal functioning of an enterprise logistics system.
Keywords: SCOR optimization Optimization Models optimization modeling logistics service logistics costs logistics processes business process metrics performance indicators KPI
Dynamic Models of Production-Finance Activity of Enterprises in Conditions of Uncertainties and Risk
MAGAZINE №1 (90) February 2019
AUTHORS MISHCHENKO A.V., SOLODOVNIKOV V.V.
CATEGORY Optimization and mathematical modelling The uncertainty and risks in supply chains
ABSTRACT
The problem of optimal management of various types of production resources in conditions of uncertainty and risk taking into account reworks is relevant and necessary to ensure the competitiveness of modern domestic industrial enterprises.
The paper deals with dynamic models of management of production resources of the enterprise, which provide maximum profit from the sale of products produced for a certain period of time, taking into account the risk, taking into account waste and reworks on technological operations of the industrial enterprise. The analysis of stability in models of management of production and financial activities of the enterprise is carried out. In conclusion, an example of calculation of the management of production and financial activities of a small enterprise which assemblies system blocks of personal computers is analyzed.
Scientific survey is based on fundamental and applied developments of domestic and foreign scientists in the field of economic theory, management theory, logistics theory and supply chain management, methods of mathematical modeling, system analysis, operations research and expert evaluation methods.
The considered dynamic models of management of production and financial activities of the enterprise allow estimating efficiency of use of production and financial assets of the enterprise in the conditions of uncertainty and risk taking into account waste and rework.
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Optimization Models for Determination of Characteristics for Multi-Item Inventory Control System within Industrial Enterprise
MAGAZINE №3 (80) June 2017
AUTHORS
LEVENTSOV V.A. - Cand. of Ec.Sc., Associate professor, Director, Graduate School of Industrial Management and Economics, Peter the Great Saint-Petersburg Polytechnic University (St. Petersburg, Russia)
KOBZEV V.V. - Doctor of Ec.Sc., Professor, Graduate School of Industrial Management and Economics, Peter the Great Saint-Petersburg Polytechnic University (St. Petersburg, Russia)
CATEGORY Inventory management Optimization and mathematical modelling
ABSTRACT
Urgency of the research is connected with the modern conditions of domestic industrial enterprises’ functioning process. Particularly, we are talking about complex structure of corresponding supply networks and processed material flows, increasing competition between enterprises as a result of goods market’s globalization, considerable share of logistic costs in production price, etc. Above-mentioned conditions determined appropriateness of definition for the problem concerning determination of characteristics for multi-item inventory control system which defines effectiveness of functioning for corresponding warehouse capacities. In the initial stages of the research the analysis of scientific works concerning research area has been performed, corresponding results have become the basis for the conclusion about limitation of existing tools for real-world inventory problems’ solving. During the next stage of the research basic optimization model for determination of characteristics for multi-item inventory control system has been created. The model describes situation when goods are dispatched with variable intensity described by uniform probabilistic distribution and are accepted as batches with certain size. At the next research stage mentioned model has been modified for taking into account the opportunity of ordering batches with variable size to make corresponding multi-item inventory control system more flexible. The distinctive feature of created models concerns two parameters being used in proposed inventory control system – minimal and maximal reorder points. Minimal reorder point defines the moment of batch ordering for certain inventory item, maximal reorder point is used for estimation of appropriateness for batch ordering for additional inventory items towards above-mentioned item being replenished on the basis of minimal reorder point. During the next stage of the research created optimization models have been realized in a practical example with application of «Solver» add-in of «Microsoft Excel» software. The results of models’ realization confirmed high practical importance of the tools created during the research.
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