SIGNIFICANCE OF ANTICIPATING DEMAND FOR THE INVENTORY MANAGEMENT PROCESS OF AN ENTERPRISE BY APPLYING THE MONTE CARLO SIMULATION
Journal Title: FBIM Transactions - Year 2017, Vol 0, Issue 2
Abstract
More than ever, market conditions are limited by financial resources. One of the major costs of business entities is the costs of inventory management. Successful business doing in modern conditions requires an efficient application of inventory management. Each business entity aspires to satisfy its clients’ needs with minimal inventories. Efficient inventory management requires the anticipation of demand for a certain product or for a group of products. Efficient inventory management offers a possibility of creating a sustainable competitive advantage and improving the competitive position of an enterprise. In the first part of the paper, the significance of inventories, inventory management and the influence of inventory management on the business doing of an enterprise are presented. The second part of the paper contains the theoretical framework for the anticipation of demand, whereas in the third part the research results are presented. The subject matter of the research study conducted in his paper is the determination of the significance of the anticipation of demand for the inventory management process of the considered enterprise by applying the Monte Carlo Simulation. The Monte Carlo Methods can be defined as the statistical simulation methods that apply a series of random numbers for the purpose of conducting a simulation. Nowadays, the Monte Carlo Simulations are used for solving the most complex problems of business doing. The goal of the research study is to determine the optimal level of the inventories of television sets on the basis of the anticipated demand with the aim of managing the same in an efficient manner.
Authors and Affiliations
Željko Milovanović
Keywords
Related Articles
- EP ID EP331490
- DOI 10.12709/fbim.05.05.02.09
- Views 82
- Downloads 0
ADOPTION OF THE LAW ON NATIONAL DNA REGISTER IN THE REPUBLIC OF SERBIA
Narodna skupština Republike Srbije usvojila je sredinom prošle godine novi Zakon o nacionalnom DNK registru koji je najvažniji pravni izvor za forenzičke analize i veštačenja, pre svega u kontekstu otkrivanja i rasvetlj...
SOCIAL ENGINEERING AND PERSONAL DATA
In today's information environment, there are more threats and dangers to the security of computer users. One of these threats that is very widespread and without the chance to zoom out in the future, is certainly steali...
OSNOVNE POSTAVKE BUDŽETSKE POLITIKE NA PRIMERU EVROPSKE UNIJE I REPUBLIKE SRBIJE
Budžet Evropske unije je definisan osnivačkim ugovorima, a osnove budžetskog sistema Srbije utvrđene su Zakonom o budžetskom sistemu Srbije. Pomenutim zakonom uređuje se planiranje, priprema i donošenje budžeta Republike...
LEADERSHIP TODAY – NECESSITY OR MYTH?
If one opens amazon.com today and tries to find books that have words management & leadership words in their titles, he will find over 100,000 titles. Certainly, today, the connection between management and leadership is...
CURRENT ASSET MANAGEMENT AND CURRENCY CAPITAL
Functioning of a company as a system begins with the acquisition of its elements: labor, resources and work items (materials) in order to perform a certain task. These funds are necessary for doing business in the compan...