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Increasing the Efficiency of Inventory Management of an Industrial Company

Student: Liliia Asadulova

Supervisor: Vladislav Lukinsky

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Strategic Management in Logistics (Master)

Final Grade: 7

Year of Graduation: 2020

In the current development of the logistics infrastructure, a significant role in the economic stability of the company is held by inventory management. Organizations use various automated tools to optimize this process. Currently, the process of the optimizing the supply chain by introducing a new link in the form of a distribution center is gaining more and more popularity. For the first time, a practical implementation of the distribution center in the supply chain was implemented in a foreign company. Attention to this tool was given by domestic researchers after receiving positive results. However, the distribution area currently covers only retailers. The key results that the organization achieves by optimization the supply chain management can be distinguished as minimization of storage and transportation costs, as well by an increase in the number of customers. In this paper, an example of the practical implementation of a distribution center in the supply chain of an industrial enterprise will be presented. An algorithm for choosing an approach with respect to supply chain optimization has been developed based on the analysis of the inventory management methodology. Moreover, the effective territorial location of this link has been determined by converting the method of determining the center of gravity. The economic component of the implementation of the distribution center was calculated for a full analysis of the effectiveness of the presented project.

Full text (added May 19, 2020)

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