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

Authors

DOI:

https://doi.org/10.58861/tae.bm.2023.1.02

Keywords:

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

JEL Classifications:

L81, F14, F17

Pages:

20-31

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 are considered that allow the distributor (wholesaler) to make informed decisions about the volume of goods purchased from the manufacturer, 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.

Author Biographies

Alexey Zalozhnev, Institute of Management Problems of the Russian Academy of Sciences

Doctor of Technical Sciences, Professor, Institute of Management Problems of the Russian Academy of Sciences, Moscow, Russia, e-mail: al.zalozhnev@yahoo.com.

Dmitry Chistov

Doctor of Economics, Professor, Financial University under the Government of the Russian Federation, Moscow, Russia, e-mail: dchistov@fa.ru

Published

30.03.2023

How to Cite

Zalozhnev, A., & Chistov, D. (2023). MODELS FOR MAKING DECISIONS ON PURCHASE VOLUMES DEPENDING ON THE ASSESSMENT OF UPCOMING RETAIL SALES. Business Management, 33(1), 20–31. https://doi.org/10.58861/tae.bm.2023.1.02