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Improving Stock Management System of Raw Materials of Manufacturing Company

Student: Alekseeva Elena

Supervisor: Maria Yermolina

Faculty: Graduate School of Business

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Year of Graduation: 2016

Annotation 1. Name of the thesis “Improving Stock Management System of Raw Materials of Manufacturing Company” 2. Student Elena Alekseeva, BLG 122, Faculty of Business and Management, School of Logistics 3. Supervisor Ermolina Maria V., Senior Lecturer Keywords: inventory management, stock management, economic order quantity, inventory management model, strategic profit model. The purpose of the thesis is to provide recommendations in order to improve the efficiency of stock management system of raw materials of manufacturing company. The objectives of the thesis include following points: analysis of the economic activities of the company, highlighting the problems associated with the current inventory management system, analysis of the literature in order to identify solutions to the existing problems, the application of the recommendations developed in practice, cost-effectiveness analysis of the measures. During the analysis of logistic activity of the enterprise, the following problems have been identified: lack of organizational structure of the logistics department, excessive level of stock, delivery disruptions. The object of this study is trading and manufacturing enterprise. Company’s main activities are production and sales of industrial tools and equipment for metal processing. The following recommendations were developed in this study: reorganization of functions within the logistics department, ABC analysis of the existing product range, economic order quantity calculation for each item, simulation of stock movements taking into account the chosen inventory control models. The economic feasibility of the practical application of the proposed recommendations. As a result, return on equity in the strategic profit model has increased by 6.58%. Thesis volume: p. 70, figures - 14 tables - 14, a list of references - 23.

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