Logistics Service in Inventory Management
Russian companies intend to be among leaders in the international logistics world in order to attract financial investments and labor force. Being monitored on a regular basis by the World Bank the Russian Federation is compared with other countries via several logistics performance indicators which are focused mainly on the evaluation of the speed of flows movement within the supply chains of a country. Therefore, to strengthen the position of domestic companies on the international scene, there are latent opportunities in material flow management. The research extends main review inventory policies transforming main parameters of widely used models in the context of customers’ requirement satisfaction. For this purpose the methods of economic, mathematic and statistics approached are implemented. The comparison of five various environmental conditions, among which are the prohibition of stock out, the provision of items available on stock, consideration of the balance between holding and shortage costs, influence of out-of-stock event and absence of a separate item allows to find out the strictest requirements to the logistics service level.