Modelling inventory management: Separate issues for construction and application

[EN] The model of inventory management on the basis of which the calculations of the efficiency of the use of inventories, minimizing the total costs associated with their delivery, storage and fines for lack of stocks in the presence of demand for them have been made and presented in the article. Using it in practice will allow managing the logistics and warehouse costs, the risk of not receiving or reducing the company's profits due to the excess costs and the efficiency of turnover of inventories. The proposed model takes into account the depending on the price of shipment from the supplier to the warehouse, the cost of holding stocks, the cost of holding the stocks, the amount of storage costs and penalties for non-shipped products. It is proved that rationally organized order in stock management allows companies to calculate the order quantity, its optimal size and time interval between orders taking into account the prospect of delay in supply, to plan the amount of profit, to organize the accounting of the profitable level of stocks, to determine the sizes of the highest and guarantee level of the stock. Approbation of the developed model was carried out on the basis of the data of the woodworking enterprise. We used elements of the Data Mining Results technology – the MARSPline module in the application package Statistica to achieve the goals. This made it possible to construct a regression model in multidimensional space and spline surfaces through the main functions.Luchko, M.; Lukanovska, I.; Ratynsky, V. (2019). Modelling inventory management: Separate issues for construction and application. International Journal of Production Management and Engineering. 7(2):117-124. https://doi.org/10.4995/ijpme.2019.114351171247