Optimisation Models for Inventory Management with Limited Number of Stock Items

Julian Vasilev () and Tanka Milkova
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Tanka Milkova: Department of Statistics and Applied Mathematics, University of Economics Varna, 9002 Varna, Bulgaria

Logistics, 2022, vol. 6, issue 3, 1-12

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.

Keywords: optimisation; inventory management; logistic system (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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