Optimization of Inventory Management in the Supply Chain

Supply chain management (SCM)models incorporate effective technologies to reduce costs, improve the quality of products received, deliver goods and manage after-sales service allowing to minimize operating costs, increase the production throughput and the quality of products and services, which, ultimately, provides a competitive advantage in the market. Increasing globalization process requires permanent transformation in the supply chain management to meet present-day challenges and improve competitiveness of the local economy. Following from the above- stated, the complexity supply chain increases [1]. Therefore, an objective need for logistics audit and diagnostics is emerged focusing on innovative integrated technologies and mathematical models.The determining factor of supply efficiency from the perspective of procurement and logistics is the uninterrupted supply of raw materials and semi-finished goods that depends on the selection of a reliable supplier, as well as the continuous improvement of the quality of materials and the reliability of the customer-supplier relationship [2]. The most important precondition for line balancing is its modern and complete provision with the necessary technological, labor, material and financial resources. In the industry, logistics support primarily means supplying raw materials, semi-manufactured articles, assembly materials and products stored either in central production warehouses or those of the main enterprise. Thus, manufacturing inventories are hereinafter referred to as material resources stocks.