Vasilieva N.F. About the possibility of application of the formula for the optimal size of order to manage inventory in ferrous metallurgy

Abstract

On the basis of actual data of one of the metallurgical enterprises of Russia concerning the conditions of production pellets supply, as well as the inventory related expenses, the possibility of Wilson formula application to optimize the inventory level in the ferrous metallurgy has been investigated in this article. Unsatisfactory result of the Wilson formula application to optimize base materials inventory has been revealed. It is due to the low ratio of costs various groups concerned with inventory. The existence of restrictions in the use of the Wilson formula in practice results from the costs ratio value, related to the inventory, has been proved.

Keywords

The Wilson formula, current assets, production stocks, the optimal size of the order, costs associated with inventory, profitability of assets, logistics.

Vasilieva Nadezhda Fedorovna – Ph.D. (Economics), associate professor, Economics and Finance department, Nosov Magni-togorsk State Technical University. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it..

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