Increase Of Inventory Management Efficiency by Means of Multi-product Economic Order Quantity Models with Shortages

Abstract: This graduate qualification work presents research of the problem of insufficiently efficient stock management owing to the low-level degree of development of analytical models and stock management methods, including modifications of EOQ model, particularly, EOQ multiproduct model taking into consideration the deficiency. The complete assessment of advantages, disadvantages and significance of improvement of the analytical models for stock management is executed, analysis of existing stock management analytical models is effected, the tried-and-tested EOQ model and its modifications are considered, the degrees of development of modified models in the literature are studied and, moreover, analysis of the multiproduct models to calculate optimum order quantity taking into consideration the deficiency is made as a part of the study. As a consequence of the research performed, the author comes to the conclusion that modern scientific community gives precious little attention to the deficiency problem as well as improvement of EOQ multiproduct models. That results in the occurrence of correct analytical models which could be used in the actual business practice of the enterprise. So, within the scope of this research, based on the studied literature sources the author proposes his own improved multiproduct model which considers deficiency and costs for keeping the storehouse during deficiency. The possibility to use practically the proposed improved model in the existing enterprise is assessed through the example of working pharmaceutical enterprise in order to perform the full-scale analysis of the applied nature of the research. Key words: EOQ model, Multi-product, shortage, stock management.