Baltic Journal of Economic Studies (Nov 2016)
MODERN METHODS OF REASONABLE PRODUCT SUPPLY
Abstract
Thesis objective is to study modern methods of product supply with the purpose to determine optimal ways for their rationalization. Since the use of reasonable practices, taking into account external and internal factors under the specific conditions of product moving from the supplier to the buyer, makes the process of product supply economically viable, i.e., low costs for product transportation, ensures fast moving products, their safety and, ultimately, results in reduction of the costs of product disposal. Methodology. The study is based on theoretical methods to study this problem. System analysis method and simulation of the ways to improve were also used in the study. Results. Addressing these issues, the concept, form and stages of product supply process organization depending on the type of product have been studied; product supply management methods based on logistics concept of “demand response”. Practical significance. Optimization of the principles and methods of product supply, factors affecting its organization will, in practice, contribute to the development of reasonable product delivery systems featured with economic efficiency of advanced technologies of product supply. Value/ originality. The analyzed methods of product supply management based on logistics concept of “demand response” can ensure maximum reduction of response time to the changes in demand by rapid stocktaking at those points of the market where the demand is expected to increase, which will allow to reduce the costs of bringing the product to the consumer.
