Modeling of a Multi-Level Logistics System Functioning

Abstract

Purpose. The logistics of the agrarian sector covers the study of the management processes of material, informational and their consequential financial flows that have formed on the market of agricultural products and are distributed from its producer to consumers. The logistics chain is built starting from the planning processes of the production cycle of agricultural products and ending with the sale to the final consumer. Building an effective logistics system includes cost control, effective management of materials and finished products storage, provision of information support, development of delivery traffic diagram, service provision, formation of a freight network, etc. The purpose of the work is the development of mathematical methods and models for the systematic analysis of the functioning of the regional logistics system of providing agricultural material and technical resources. Methodology. To solve it in the proposed monograph, based on the study of the functioning of the modern logistic system of material and technical support, the methods of system analysis, the theory of mass service and the theory of stock management are applied. This allows to study in detail all aspects of external and internal connections, create a model of the system functioning, adequately assess its implementation, determine the optimal working conditions and, at the same time, forecast the financial characteristics of the activity. To solve this problem, a number of tasks are set in the paper. They take into account a large number of random factors, complex interactions of task parameters, non-linear dependencies, the influence of time delays on the overall functioning of the system, the formation of sales volumes and supplies of material resources. The models and methods of problem solving are original both from the point of view of research methodology and from the point of view of predicting the implementation of such systems. Practical implications. The greatest effect of logistics is achieved in integrated supply chains, which are implemented on the basis of large enterprises through the integration of raw material bases and industrial processing enterprises. When studying logistics support, in addition to the issue of transportation, considerable attention should be paid to the infrastructure for product storage. When organizing technical service and specific problems related to this, it is possible to solve such tasks as creating a competitive environment, certain changes in management; elimination of the shortage of material and technical resources due to the increase in production volumes, the introduction of new progressive technologies; creating a market for services and used equipment. Value/originality. The system of material and technical support is an organizational and management mechanism of interconnected actions of economic formations adapted to market conditions, aimed at timely and rhythmic provision of commodity producers with agricultural machinery, spare parts, fuel and lubricants. Under market conditions, their activity is based on a contractual basis and is more influenced by various external factors. Therefore, the problem arises of choosing such a mechanism of operation of logistics systems that form a regional system of material and technical support, in which their activity will be profitable and profitable.