WAREHOUSE STOCK OPTIMIZATION AND MANAGEMENT OF VEHICLE REPAIR COMPANY

Abstract

The subject of the study is the change of enterprise's profit at a stage of ordering, delivery and storage of a batch of auto parts under various factors. The goal is to develop a method for determining an optimal order size under large number of factors of real business environment to reduce general logistics costs. Research objectives: analysis of expenses at vehicle repair company in the process of purchasing, transportation and storage of material resources; development of mathematical models to determine enterprise’s profit at a stage of ordering, delivery and storage of a batch of auto parts under different value of the current and safety stock, as well as loses caused by a shortage of stock. The following results were obtained. The mathematical model is proposed that makes it possible to determine enterprise’s profit depending on warehouse stock size. Warehouse stock management system is proposed. Conclusions. Minimizing expenses of vehicle repair company in process of purchasing, transporting and storing car spare parts directly impacts on its efficiency. Therefore it is necessary to improve company’s logistic management under condition of different warehouse stock size. Using proposed model it is possible to determine optimal warehouse stock size to maximize company’s profitability.