Business Process: Modelling Based on Logistics and Management Concepts

Abstract

The article discusses the option of modelling a business process using a logistics concept to optimise costs. The issues of influence on the formation of the model, the concept of optimising transport costs, and the costs of inventory management, in terms of production and economic efficiency, are considered. The mathematical and economic model of a typical business process is shown as a formed economic paradigm that materialises the process of conceptual integration of technological and logistic approaches in the process of implementing critical business processes of the company's current activities.The article also touches upon the issues of calculating logistics costs, both in the context of their points of origin, that is, by functional areas, and general accounting in the context of each business process. The options for calculating this category of costs are considered, in the general flow of both material and financial resources of a separate business process. From the standpoint of a logistic approach to managing the total operating costs of key business processes, options for a comprehensive study of the impact of logistics costs on the general operating activities of the company are analysed.The methodology for constructing a mathematical-economic model of a typical business process is described, taking into account the factors of influence of logistics concepts. Practical use of this methodology in real economic conditions is considered, and recommendations are given for adapting the methodology to specific parameters of the subject of the economic system. The proposed model outlines the fundamental approaches to the mathematically verified analysis of vital economic parameters that characterise the fluid nature of the economic components of the modern free market. The stated methodology, while not claiming to be complete coverage of the issues presented, nevertheless assumes the possibility of practical implementation of simulation modelling, economically crucial for current operational activities, fundamental business processes.