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Development of Mathematical Model of Management for Raw Materials deliveries in the Conditions of Severe Restrictions of an Expiration Date

Authors: Brom A.E. Published: 14.09.2014
Published in issue: #4(55)/2014  
DOI:

 
Category: Economic modeling  
Keywords: model, stock control, natural losses, supply chain, raw materials, supply, expiration date, economic order quantity (EOQ)

Restrictions on expiration dates are the most severe ones when optimizing and synchronizing deliveries of raw materials and production. There occurs a problem of the organization of deliveries when using perishable raw materials. Economic and mathematical model for evaluation of the delivery order of raw materials has been developed considering natural storage at transportation and losses of raw materials. An approach to optimization is presented provided that the requirement for raw materials is a stochastic value and restrictions on a raw materials storage period in an intermediary warehouse and ensuring the probability of that total expenses for the period won’t exceed the set limit are accepted as criteria. The results of the model application are presented.

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