Supply Chain Integrated Inventory Management

Key words: inventory management, integration, multi-echelon inventory system, EOQ model, coordination, supply chain, part of logistic system, global optimization In the framework of this thesis the emphasis is put on the efficiency of improvement of existing methods and models of inventory control in multi-echelon inventory systems. The main objective of this paper is to improve supply chain inventory management control due to the implementation of the integrated approach. In this regard, this paper presents a computational calculation of the event to verify the effectiveness of the proposed integration approach in logistic system. Existing models and methods are aimed to reduce the total costs of inventory due to the global optimization in contrast to the local. However, the implementation of integrated approach can increase local costs for one of the side of this integration process. In a situation of independent companies, it is necessary to consider the redistribution mechanism of the effect of the profit when the company that gets a bigger share of benefit transfers a part of this benefit due to the saving in the total costs to another participant. The proposed recommendations can be used when implementing the proper software to ensure coordination between the chain links and automate the inventory management process. The paper presents methods of logical analysis and synthesis, economic and mathematical modeling.