Enterprise Inventory Stock Management System Optimization

Nowadays, the conditions of a globalized market economy define the rules for enterprises how to be competitive and survive. In recent years there is a tendency for enterprises to pay more attention on supply chain management organization. It happens since supply chain management can not only reduce costs, but also improve the quality and speed of customer service that is the key to success. Inventory stock management is one of the most expensive fields in logistic sphere since it may account for up to half of the total logistics costs. Moreover, inventory stock management is a great insurance under unforeseen circumstances. This work is dedicated to inventory stock management system optimization. The object of paper is inventory stock management and the subject is optimizing inventory system of manufacturing enterprise. Three chapters of the work are divided in two main parts. First two chapters are about scientific development of inventory management, the cycle of inventory stock management and main strategies used in this field. What is more, one of the classifications of stock types was analyzed, the basic concepts and costs of maintaining stocks in the system were highlighted. The last chapter is dedicated to practical work, namely optimization of the stock system at the enterprise to produce cosmetics for hair care. Before optimization, significant costs were found. By analyzing basic information of the company as well as main logistics points some serious problems were found. First, one of the suppliers provided raw materials with a large share of rejects so the task was to find a more suitable supplier in the market by criteria-based assessment. Secondly, the existing production warehouse was not involved in material flow optimization and transporting cost were high. The solution was to increase the interval between deliveries and deliver once a month. As a result, it was possible to reduce inventory costs by 18%. This once again emphasizes the importance of optimizing the inventory management system in the enterprise.