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Abstract:

Having analysed the current methods of inventory management, the authors develop an integrated inventory management method incorporating the VEN analysis, the FMR analysis and the three sigma rule. We argue that the use of the VEN and FRM analysis allows categorizing stocks according to the price and inventory turnover and suggesting specific measures for managing various inventory groups, which can help to optimise logistic costs and enhance the performance of business entities. We test out the provided methodology using the case of a book retailer and propose to analyse the inventory of an enterprise by addressing the data from sales reports and balances of goods in stock and trade departments. Using the proposed method can solve a number of problems inherent in retailers: reduce the cost of inventory management, diminish the risk of errors in the sales forecast, ensure regular deliveries and increase retailers performance.

Keywords: LOGISTICS, INVENTORY MANAGEMENT MODEL, VEN ANALYSIS, FMR ANALYSIS, PERFORMANCE EFFICIENCY, RETAIL TRADE

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