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Optimization of Inventory Management Logistic Model of the Machine-Building Enterprises

Author

Listed:
  • Olha Holovan

    (Zaporizhzhya National University, Department of Management)

  • Oleksandr Oliynyk

    (Zaporizhzhya National University, Department of Management)

  • Yevheniia Makazan

    (Zaporizhzhya National University, Department of Management)

Abstract

The aim of this study is to develop the inventory management model based on Economic Order Quantity model using asymptotic perturbation methods. The simple asymptotic formulas for the "perturbed" order quantity has been obtained when cost per order, storage cost and product demand change slightly. As the results show, the total costs, which correspond to "perturbed" order quantities, are less than ones at economic order quantity. Decrease of logistics costs can improve the market competitiveness of the machine-building enterprises' products. Modeling the nature of cost increase and demand fluctuation using asymptotic formulas the machine-building enterprises will be able to make prompt adjustments to optimize logistics processes.

Suggested Citation

  • Olha Holovan & Oleksandr Oliynyk & Yevheniia Makazan, 2017. "Optimization of Inventory Management Logistic Model of the Machine-Building Enterprises," EconWorld Working Papers 17001, WERI-World Economic Research Institute, revised Feb 2017.
    • Handle: RePEc:ana:wpaper:17001
    DOI: 10.22440/EconWorld.WP.2017.001
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    References listed on IDEAS

    as
    1. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.
    2. Eynan, Amit & Kropp, Dean H., 2007. "Effective and simple EOQ-like solutions for stochastic demand periodic review systems," European Journal of Operational Research, Elsevier, vol. 180(3), pages 1135-1143, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Logistic model; asymptotic methods; small parameter; asymptotic expansions;
    All these keywords.

    JEL classification:

    • C59 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Other
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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