Optimisation Models for Inventory Management with Limited Number of Stock Items

Abstract

Background: Stocks of raw materials and finished products are found in all units of logistics systems and require significant financial means of management. For this reason, scientifically justified approaches to stock management and cost minimisation must be explored. Despite the existence of many such approaches in literature and practice, each case has its own specificities and specificities to which stock management models should be adapted. In this article, the aim of the authors is to propose an approach to determine optimal supply sizes from different types of stocks (more than one is known in the literature as multi-nomenclature) that minimises only the cost of inventory management. The cost of inventory is not included. Methods: The article used the methods of mathematical optimisation, the method of least squares, and regression analysis. The scope of the models in the article is inventory management, with a limited number of stock keeping units. Time series data for the delivered quantities and time series data for the costs of stock management are used. Both time series use the same time period. Results: The constructed specific nonlinear mathematical models for optimising the total cost of stock management are approbated based on sample data and the results obtained are analysed. Conclusions: The created mathematical models and methods for optimising the total cost of stock management may be used by logistics managers to minimise the total costs of inventory management.

Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System

“…In M NS , the value of a depends on the value of the variable of the integration t. When t ∈ [0, (q+1)r − w), then a = 0 and when t ∈ [(q+1)r − w, r), then a = 1. Therefore, by (7),…”

“…Our study, therefore, ignores managerial and operational costs of in-house and outsourced repair. See, in contrast, [7] that optimizes the stock management and ignores the inventory cost and [8] that considers maintenance and inventory jointly. Therefore, the practical decision of whether to repair in-house or outsource repair should weigh possible managerial advantages of outsourcing against the cost of additional spares needed to maintain the required system performance.…”

Proposal of Set of Optimization Criteria and Their Specific Calculation for Effective Inventory Management in an Industrial Enterprise

“…Other authors [7], [8] and [9] deal with the mathematical models of inventory optimization and management or there are authors [10], [11] and [12], who present various inventory management and optimization tools.…”

International Transportation Mode Selection through Total Logistics Cost-Based Intelligent Approach

“…Vasilev and Milkova presented optimization of inventory management by proposing an approach to determine optimal supply sizes for different types of stocks, specifically addressing multi-nomenclature scenarios. The authors have employed mathematical optimization using MS Excel to obtain the results, but the study is applicable for limited SKUs and also has few oversimplified assumptions [21]. The review article explores and locates the current state-of-the-art-related application areas from freight transportation, supply chain, and logistics.…”