Asymptotic methods in optimization of multi-item inventory management model
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Date
2020
Authors
Horoshkova, Lidiіa
Khlobystov, Yevgen
Volkov, Volodymyr
Holovan, Olha
Markova, Svitlana
Golub, Alexander
Oliynyk, Oleksandr
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Abstract
The study proposes asymptotic methods for optimizing multi-item
inventory model. To achieve the objective of the study, formulas of the optimal
value of multi-item delivery frequency based on the asymptotic approach under
conditions of minor changes in the input parameters have been obtained. The
discrete increase in the execution costs and inventory holding costs which depend
on the “small parameter” as well as a gradual increase in periodic fluctuations in
demand for products have been taken as variable parameters of the system. Easytouse analytical formulas for determining optimal order interval when ordering
and inventory holding costs, as well as demand meet insufficient changes have
been obtained. Testing of the proposed approach to the multi-item inventory
model has been carried out on the example of HoReCa regional market segment.
The proposed formulas allow to apply the obtained results for optimization and
forecasting of decision-making in the system of procurement logistics of a
company amid variation of input parameters describing changes of external and
internal business environment.
Description
Keywords
multi-item order, optimal order, delivery interval, small parameter, asymptotic methods, conference materials
Citation
Asymptotic methods in optimization of multi-item inventory management model [electronic resource] / Horoshkova L., Khlobystov I., Volkov V., Holovan O., Markova S., Golub A., Oliynyk O. // CEUR Workshop Proceedings Special Edition of International Conference on Monitoring, Modeling and Management of Emergent Economy, M3E2-MLPEED 2020; Odessa; Ukraine; 13-18 July 2020. - 2020. - Vol. 2713. - P. 393-414.