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Finance and Credit
 

A methodology for efficient management of inventories

Vol. 22, Iss. 31, AUGUST 2016

PDF  Article PDF Version

Received: 31 March 2016

Received in revised form: 23 June 2016

Accepted: 1 August 2016

Available online: 30 August 2016

Subject Heading: BUSINESS VALUE

JEL Classification: G32

Pages: 42-60

Kerimov Kh.E. Plekhanov Russian University of Economics, Moscow, Russian Federation
kerimovhayal232@gmail.com

Importance The article addresses the effective management of inventories for companies with seasonal sales and presents an algorithm for inventories optimization.
Objectives The study aims to create an efficient theoretical model for optimization of inventories by type of production.
Methods The study employs the additive and multiplicative models of forecasting, analysis of autocorrelation in time series, Fourier series construction technique, a model of dynamic programming.
Results I developed an efficient algorithm for optimizing the scope of finance for a specific type of inventories by time intervals of a seasonal predictive model. The paper presents a procedure for an economic order quantity subject to the factor of indirect losses from monetary funds immobilization.
Conclusions and Relevance The developed technique will enable to enhance the efficiency of working capital management of the enterprise through minimization of immobilized monetary funds in the form of inventories and shipment and storage cost saving.

Keywords: current assets, optimization, inventory, order quantity, immobilization

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