ANALYSIS OF VARIABILITY IN INVENTORY CONSUMPTION AND ITS UTILIZATION IN INDUSTRY

1 BESTA Petr
Co-authors:
2 NÉTEK Václav 1 KUBICA Stanislav 2 PROSICKÝ Petr
Institutions:
1 VŠB – Technical University of Ostrava, 17. listopadu 15, 708 33 Ostrava, Czech Republic, EU, petr.besta@vsb.cz
2 Business School Ostrava (VSP), Michálkovická 1810, 710 00 Ostrava, Czech Republic, EU
Conference:
Carpathian Logistics Congress, Priessnitz Spa, Jesenik, Czech Republic, EU, November 4th - 6th 2015
Proceedings:
Proceedings Carpathian Logistics Congress
Pages:
226-230
ISBN:
978-80-87294-61-1
ISSN:
2694-9318
Published:
18th April 2016
Proceedings of the conference were published in Web of Science.
Metrics:
464 views / 160 downloads
Abstract

Inventories are a factor that significantly affects competitiveness of any manufacturing enterprise. Manufacturing companies should protect inventories against unexpected fluctuations in their consumption and deliveries and thus promote the continuous nature of the production process. Inventories, however, are also naturally associated with the costs required for their maintenance. It is therefore crucial to precisely evaluate the previous consumption and properly adjust the amount of safety supplies. A very useful tool for statistical analysis of data seems to be the method of measuring the variability of consumption. This method allows us to assess the intensity of fluctuations in consumption very easily. The respective conclusions can then be used for estimating the future consumption as well as for setting the amounts of safety inventory levels. The paper analyzes the use of this tool in the field of inventory management in industrial plants.

Keywords: cost, inventory, profit, storage.

© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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