Modelling the System of Diversified Inventory Management

Abstract

The relevance of studying the models of diversified inventory management is caused, firstly, by the complexity and diversity of management process, and, secondly, by a large proportion of logistical costs in overall enterprise costs. The primary value of inventory management models is to increase the qualitative level of meeting various kinds of needs by material resources and improving the reliability of economic system performance. The article considers the process of modelling the system of diversified inventory management. A Special attention is paid to the mathematical forecasting model of implementing, determining the reorder level and order quantity. A feature of the present model is that it involves only the logic of the process, since the variety of control algorithms modifications may cause certain difficulties of creating a universal model. In the given model, a controllable parameter is the time required to dispose of the remainder of stock, which enables us to take into account, firstly, the forecast demand for resources, and, secondly, the restrictions on the production capacity.

Inventory management systems of small and medium enterprises in Bangladesh

“…Application of the system approach to inventory management allows monitoring of the whole material flow process and minimizes randomness of this process. For managing optimum inventory level, material flow needs to be streamlined and understood as a system for a consolidated integration among material, financing and information flow (Viktorovna and Ivanovich, 2016a, b).…”