Improvement of Inventory Management System in the Context of Trading Company

Abstract 1. Topic of bachelor’s thesis: "Improving inventory management system on the trading company example" Improvement of Inventory Management System in the Context of Trading Company” 2. Student: Nikitina Julia, group BLG 124, school of logistics, faculty of business and management 3. Supervisor: Tamara Levina, Candidate of economic sciences, senior lecturer 4. Key words: inventory management, trading company, safety stock, inventory management models, inventory management system, strategic profit model. The general purpose of this study is to develop recommendations for improving the inventory management system. To achieve this goal the following objectives need to be met : to analyse of economic activity; to study the existing researches and the practical experience of improving inventory management system; to develop the algorithm for improving the efficiency of inventory management systems, to offer solutions to improve the existing system and their economic efficiency. In the analysis of logistics perfomance of the company the following problems were identified: a high stock levels at the warehouse, excessive safety stock options offered by the information system. The object of the research is the trade company. The sphere of company’s activity is the wholesale of thermal equipment. In this paper, the following solutions have been developed: the implantation of the modified model with a fixed size of the order, the calculation of the optimal safety stock to maintain an optimal level of inventory at the warehouse. The economic efficiency of the practical application of the proposed recommendations was proved. As a result, return on equity in the strategic profit model increased on 17%. 5. Length of bachelor’s thesis: pages - 75,pictures – 31, tables - 13, list of literary sources – 31, appendixes – 3.