Abstract
Inventory management is a science that has developed models and methods for decision-making related to the organization of logistics processes in the main functional areas of supply, production, and distribution. The results in a number of papers related to centralized and decentralized inventory allocation are debatable and require further research. Our results indicate that centralization of inventory leads to a reduction in inventory levels, but consideration of additional conditions, such as increased requirements for stock-outs and variations in demand in warehouses, lead to an adjustment in the results. It was found that approaches using the Square Root Law (SRL) to estimate inventory levels assume that the locations face the same average lead time. The proposed approach takes into account the possibility of a combined inventory management strategy that integrates the benefits of placing stock in different warehouses and allows for outcomes such as, on the one hand, the avoidance of shortages in the distribution network and, on the other hand, avoidance of unnecessary safety stocks in warehouses. The proposed approach has been tested on the basis of demand modelling.
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Lukinskiy, V., Lukinskiy, V., Bazhina, D., Nikolaevskiy, N., Averina, E. (2022). A Combined Strategy of Centralized and Decentralized Inventory Allocation. In: Kabashkin, I., Yatskiv, I., Prentkovskis, O. (eds) Reliability and Statistics in Transportation and Communication. RelStat 2021. Lecture Notes in Networks and Systems, vol 410. Springer, Cham. https://doi.org/10.1007/978-3-030-96196-1_24
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DOI: https://doi.org/10.1007/978-3-030-96196-1_24
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