Improving the Inventory Management System on the Example of Trade Company

The purpose of the work is to develop recommendations for improving the existing inventory management system. For achieving the goal the following tasks have been considered: an analysis of the company's economic activities; studying the existing research and experience of other companies in the field of improvement of the inventory management system; developing an algorithm for increasing the efficiency of the inventory management system, preparation recommendations for improving the current system with economic efficiency. During the research of the trading company, the following problems were highlighted: too high level of stock in the warehouse, excessively large amount of insurance stock, which is configured by the SAP information system. The object of research is a trading company that sells luxury goods. The following solutions for the company have been developed: a modified model with a fixed order size has been introduced, an optimal insurance stock has been designed to maintain an optimal stock level. The proposed solutions are economically viable, as a result, the return on equity in the model of strategic profit has increased by 19%.