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The Improvement of Inventory Management Processes of the Direct Sales Company SHOP24

Student: Ilina Mariia

Supervisor: Maria Yermolina

Faculty: Graduate School of Business

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Year of Graduation: 2016

ABSTRACT 1. Theme of graduation thesis «The Improvement of Inventory Management Processes of the Direct Sales Company «SHOP24» 2. Student Ilina Mariia, the BLG123 group, The School of Logistics, The Chair of Business and Management of HSE 3. Research Supervisor Ermolina Maria, senior lecturer of the Supply chain management Chair of HSE 4. Keywords The concept of Quick Response (QR), lost sales, the immobilization of funds in stocks, total cost of ownership (TCO), the optimal inventory level Nowadays the market of TV Commerce is in a stage of stagnation with the same high level of competition. In this case, the key factor of acquisition of competitive advantages for TV shopping is to improve the level of customer service, which is directly dependent on the effectiveness of inventory management processes. The purpose of the bachelor work is to develop optimization solutions to improve processes of inventory management in the company, which will reduce the time of orders execution, improve the interactions with suppliers and prevent the occurrence of cross-functional conflicts. In order to achieve this goal the following tasks have been solved: the analysis of the activities of the company; the definition of issues associated with the processes of inventory management; the description and analysis of the main approaches to inventory management. As a result, the technology of inventory replenishment was selected and an approach to calculating the optimal size of the stock was developed. In addition, the paper presents the changes that need to be introduced in the process of cooperation with suppliers and organizational structure of the company. Finally, based on the strategic profit model, the economic feasibility of the proposed changes has been proven. 5. The volume of bachelor work: pages - 78, figures – 21, tables - 7, the literature sources – 31, appendixes – 6.

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