Determination of “just-in-time” service and optimal order size in the logistics system of the regional agro cluster
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Keywords

regional agro cluster
delivery of products
optimal route of delivery
optimal order size
inventor storage costs

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How to Cite

Meburishvili, M., & Tskipurishvili, T. (2024). Determination of “just-in-time” service and optimal order size in the logistics system of the regional agro cluster. Georgian Scientists, 6(1), 186–198. https://doi.org/10.52340/gs.2024.06.01.25

Abstract

The article considers the  example of coordinated and effective functioning of the parties involved in the process related to road transport services in the logistics system of the regional agro cluster – “regional warehouses of the agro cluster, road transport, customers". As an illustration, one of the options for delivering products to the customer according to the agreed schedule and the list of works to be performed are presented; Using graph theory, a network graph is drawn up, which allows to determine the entire cycle of work, which is necessary for drawing up an agreed schedule for the delivery of products to consumers in a regional agro cluster and working with a “just-in-time” system. To determine the quantity of products to be delivered, the scientific direction Inventory Management is used. An example of determining the optimal route for shipping products is given, where it is determined which option should be chosen; the problem set to verify the correctness of the choice is solved by a mathematical method, where the problem of drawing up a rational route with the minimization formula is applied to the problem of linear programming. In supply management, Wilson's formula is introduced to determine the optimal order size - (OOS). Various works have been analyzed, where optimal order size report methods and application practices are discussed. The formation of costs for storage of products and the amount of costs incurred for storage are discussed, which include: a) constant costs for storage and maintenance of a unit of products in stock in a specified period and the amount of constant costs for storage and maintenance of a unit of products in the same period; b) variable costs of the unit of production in the period under review, which are related to the current costs of inventory services (control, accounting, etc.). As an example, options for using warehouse space are discussed, in the form of flexible inventory management and “fixed” stock management. Consideration of transport costs when calculating the OOS, optimization of costs for the performance of logistics functions, and the function of providing customers with products defined in the agro cluster correspond to the modern approach to the effective operation of the logistics system of the regional agro cluster.

 

https://doi.org/10.52340/gs.2024.06.01.25
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References

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