Inventory Management Under Dependent Demand in the Conditions of Risk

Inventory management in supply chains with independent demand has received considerable attention over the past decades. It should be also emphasized that significant progress has been reached in the algorithms development for inventory management under dependent demand, in particular, based on the concept of Material Requirement Planning (MRP) and its modifications. Despite the progress achieved in the development of MRP, the sources available to us practically do not pay attention to the issue of forming safety stocks, particularly, they do not consider the situation when the number of defective components are presented as random variables and described using probabilistic characteristics. The approach we proposed allows to solve this problem, which is especially significant for manufacturing enterprises that do not have the ability to produce the missing number of components and such items are delivered from various suppliers. To the best of our knowledge, this approach has been proposed for the first time and may be used in practice for making managerial decisions based on the calculation of costs and assessing the reliability of supplies under dependent demand.