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Logistical Optimization of Industrial Enterprise’s Material Resources Management

Author: Georgy M. Greyz, Cand. Sc., Assistant-Prof. of Trade Economics Dept; Viktor M. Katochkov, Dr. Sc. (Economy), Prof. of Trade Economics Dept; Vladimir A. Markovsky, Jr. lecturer of Trade Economics Dept.

Abstract: The article reveals an option for inventory optimization within independent logistical processes (in supply-production-distribution chain) by matching material resources (objects of labour) batch size with logistical process’ efficiency. It is proved that minimal batch size is formed depending on the efficiency of related logistical processes. Comparison of actual material sizes of resources batches and their internal movement rhythm with calculated (ideal) parameters will allow assessing whether the industrial enterprise’s inventory management is optimal or not.

Key words: logistics; inventory management; industrial enterprise; supply; production; distribution; inventory optimization within logistical processes; material resources batch sizes; material flow movement rhythm.