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MODEL OF STOCK MANAGEMENT IN RETAIL VIA STATIONARY COMMERCIAL NETWORK



A.M. Smolensky
dekanat205@yandex.ru
candidate for PhD, the Faculty of Economics, RUDN University
Moscow

Keywords:

  • retail
  • stationary commercial network
  • goods
  • stock management
  • echelon stock management system
  • The current situation in retail is characterized by market saturation with goods and decreasing purchasing power of the population. It intensifies the competition in the sphere in question. Under such circumstances, trading companies able to minimize expenses connected with getting the goods from manufacturers to consumers can survive. The analysis of these expenses shows that a significant part of them is connected with creating and maintaining stock. The complexity of stock management stipulates the need to fully substantiate the decisions. Relevant mathematical models serve as an effective tool to secure this substantiation. Our research is aimed at developing such a model. The model we introduce implements a stochastic approach to describing a retail chain that is seen as an echelon stock management system characterized by fixed delivery time and random demand for goods. It gives us the opportunity to consider retail characteristics vital for the stock management via stationary commercial network and to suggest an effective tool of substantiating managerial decisions.

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