Models Used in Stock Management

Abstract

Any production process involves consumption of resources, material resources is very important. Consumption of these resources require a financial effort and not always is a rhythmic consumption. He is conditioned by technology execution of each product. Material resources must exist in every moment of the production flow. For this organizational entity must have supplied. Their supply consumes financial, human resources and time. For this reason they must be well dimensioned. A similar situation is also the occasion of obtain finished products and selling them to the beneficiaries. Thus there are organizational entities that delivers products based on the orders of their beneficiaries or have them stored in stock and then deliver them to beneficiaries. From these circumstances decisions regarding supply-sales activities are subject stock management. This involves the adoption of some managerial decisions regarding the supply-sale activity using econometric models. Such models use specific econometric equations, namely stochastic equations. Solving such equations is based on the calculation of the inverse matrix. There is a group of models consisting of classical stochastic models, such as those with fixed period and constant demand; those with fixed period and the possibility of stock outage; those for a single product, etc. The heuristic stochastic models are also used, such as the ABC model, etc.