Asymptotic Methods in Optimization of Inventory Business Processes

Abstract

The use of inventory management models enables the management of the company to optimize logistics business processes and to reduce fixed and variable costs of production, order and sales. The study proposes a multinomenclature model for optimizing inventory business processes using asymptotic methods. An easy-to-use analytical formula for determining optimal order interval, when order and inventory holding costs meet insufficient cyclical changes, is obtained. Testing of the developed model of optimization of inventory business processes was carried out on the example of the enterprise operating in the HoReCa segment of Zaporizhzhia the regional market. The proposed multinomenclature inventory management model enables the company management to apply situational management of these processes, modeling the changes caused by increased product storage costs and order fulfillment. Keywords: logistic model, small parameter, asymptotic methods, total logistical costs, multi-nomenclature order.

Improvement of multi-item order systems and inventory management models using optimal control theory

“…Due to the expansion of business activities and the increasingly competitive environment, research on inventory management has become one of the prevalent issues among researchers; accordingly, different models and methods have been developed since the 19th century (Sahoo et al, 2019). Horoshkova et al (2020) analyzed the asymptotic methods to optimize the multi-item inventory management model. In this research, formulas related to the optimal value of multiitem delivery frequency have been obtained.…”

“…Horoshkova et al (2020) analyzed the asymptotic methods to optimize the multi-item inventory management model. In this research, formulas related to the optimal value of multi-item delivery frequency have been obtained.…”

Optimization of inventory management models with variable input parameters by perturbation methods

“…However, insufficient attention was paid to determining optimal order quantity under conditions of the variability of solely order fulfillment costs. Further development of the asymptotic approach to multi-item supply was given in [25] which takes into account changes in the storage costs but at a constant demand for the proposed products.…”

Інтелектуальна Система Підтримки Планування Виготовлення Продукції Між Хлібопекарськими Підприємствами

“…The research [4] describes the formulas that allow applying the obtained results to optimize and forecast decisionmaking in the enterprise's procurement logistics system against the background of changes in external and internal business environments. S. markova proposed the formulas of the optimal value of the delivery frequency of several goods based on the asymptotic approach in conditions of minor changes in the input parameters.…”