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The Impact of Losses on the Management of Internal Inventory in Production

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  • Lyubyashenko, Sofia N.

    (Novosibirsk State University of Economics and Management (NSUEM))

Abstract

For a manufacturing company entering a chain with a simple or complex configuration, the urgent task is to achieve a cost balance between a shortage and an excess of inventory. To increase competitiveness and production continuity, firms use various inventory management methods, including planning the optimal batch of supplies. Despite numerous studies on this topic, the question remains: what is the impact of losses from scarcity on the size of the stock? The article considers the problem of optimizing the company's stock, which reduces the misalignment of the product production process in the context of changes in the volume of consumed components by production under the influence of random disturbances. The degree of influence of deficit losses on the size of the stock and the total average losses is studied, the question of the possibility of using an approximate estimate of deficit losses in determining the stock level is discussed, the results of solving the problem of optimizing the stock using different types of distributions with the same statistical characteristics are analyzed. In practice, accurate determination of deficit losses is associated with certain difficulties and costs. The calculations presented in the article allow us to draw an important conclusion, which is that errors and inaccuracies in determining losses from scarcity have little effect on the stock and loss values and are not an obstacle to optimizing the internal stock. Therefore, in the tasks of optimizing the stock, it is sufficient to determine the losses from the deficit at the level of those actually existing in the company's activities. This conclusion represents the scientific novelty of the study. The article is of practical importance, since the developed approach to solving the optimization problem and the result obtained can be taken into account by the company when planning a batch of supplies in the inventory management system.

Suggested Citation

  • Lyubyashenko, Sofia N., 2025. "The Impact of Losses on the Management of Internal Inventory in Production," Journal of Modern Competition, Synergy University, vol. 19(4), pages 55-64.
  • Handle: RePEc:snr:mdrcmp:v:19:y:2025:i:4:p:55-64
    DOI: 10.37791/2687-0657-2025-19-4-55-54
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