MAGAZINE №2 (79) April 2017

AUTHORS  IVANOVA A.V.

CATEGORY  Inventory management Logistics service management Optimization and mathematical modelling

ABSTRACT

Russian companies intend to be among the leaders in the international logistics world in order to attract financial investments and labor force. Being monitored on a regular basis by the World Bank the Russian Federation is compared with other countries via several logistics performance indicators. These indicators are mainly focused on the flows movement speed evaluation within the supply chains of a country. Therefore, there are latent opportunities in material flows management to strengthen the position of domestic companies on the international scene. The research extends main review inventory policies transforming main parameters of widely used models in the context of customers’ requirement satisfaction. For this purpose, the methods of economic, mathematic and statistics are implemented. The comparison of five various environmental conditions, among which are the prohibition of stock out, the provision of items available on stock, balance achieving between holding and shortage costs, influence of out-of-stock event and absence of a separate item allows to find out the strictest requirements to the logistics service level. 

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