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Mathematical optimization methods and models for inventory management in a multi-format grocery retail chain


A.V. Bal – Post-graduate Student, South Ural State University (Chelyabinsk). E-mail:

This work consists of 3 main parts: review, analysis of the currently utilized approaches to inventory management in a multi-format retail chain, description of the proposed models for inventory management optimization and discussion of the results of its implemen-tation in multi-format grocery retail chain «MALL», Chelyabinsk region, Russia. The first part presents the classification of main methods of inventory management based on the belonging to different inventory type. This framework is chosen for classification because it clearly shows the differences in origin of various methods of inventory management. The second part describes those methods of inventory management that, in authors’ opinion, need improvement. Moreover, there is a formulation of 2 mathematical problems which provide a solution for improvement of the respective methods of inventory management. Finally, results of the implementation of developed algorithms and mathematical models are presented to illustrate their effectiveness and profitability in the solution of real retail chain business problems.


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