MODELS FOR MAKING DECISIONS ON PURCHASE VOLUMES DEPENDING ON THE ASSESSMENT OF UPCOMING RETAIL SALES

Authors

Keywords
wholesale trade, volume of purchases, commodity stock, profit, optimization model in trade

Abstract
This article considers an economic system that consists of three types of business entities: a manufacturer, a distributor (wholesaler), and a retailer. Mathematical models that allow the distributor (wholesaler) to make informed decisions about the volume of goods purchased from the manufacturer are considered, using the assessment of upcoming retail sales, assuming that the manufacturer's selling price depends on the volume of purchases. Models are built from the standpoint of resolving conflicts between participants in the decision-making process: purchasing managers who strive to have enough inventory and financiers who want to reduce this volume, for example, to increase the liquidity of the organization's assets or reduce storage costs. The constructed models allow the distributor to solve the problem of determining the optimal volume of goods to purchase that will maximize additional profit

JEL: L81, F14, F17.
Pages: 12

To view the full text of the article click on the relevant button below.

More titles

  • THE EU POLICIES AS THE PUBLIC ADMINISTRATION TOOL TO INCREASE THE AGRICULTURAL PRODUCTS EXPORTS

    Agriculture is an important source of food for people, forage for animals and raw materials for processing industries. Effective public administration of such an important economy sector as agriculture and all the sectors connected with it is an absolute must for a sustainable development of every single village as well as the whole ...

  • THE AREAL AS A TOOL FOR LOCAL BUSINESS DEVELOPMENT AND PROSUMING (A vision)

    Strategic turns in regional development are a serious challenge. They lead to actions related to the rationalisation of the management of administrative units and territorial systems, to their linking in order to seek synergistic effects. The article deals with a problem related to the creation of associations of municipalities, here ...

  • THE INFLUENCE OF SOCIAL MEDIA ON ADVERTISING TOURISM SERVICES (IN THE EXAMPLE OF BULGARIA)

    This article aims to provide an in-depth review of current literature related to the rapid and inevitable spread of social networks as a source of information influencing consumer opinion. To achieve this, it looks at how internet platforms are becoming an invariable part of the user's daily life. The main trends showing the place and role of ...