ANALYSIS OF AN INVENTORY MANAGEMENT MODEL WITH DISCOUNTS

This article deals with the theory of inventory management and sets it in the context of other methods of operational research, and it also emphasizes the importance of this theory for strategic decisions in enterprises and organizations. Next, based on a Master’s Thesis ‘Inventory Optimization of a Chosen Enterprise’ by the author, this article deals with the discount model, which is analysed from the theoretical point of view with an emphasis on the variable part of storage costs. The respective mathematical formulas are also derived to calculate the total costs. Moreover, the mathematical structure of the discount model is compared with that of the EOQ model, which was the first inventory management model proposed as early as 1915. Various examples are given to illustrate the discount model. Finally, the article discusses the advantages and disadvantages of the discount model and formulates recommendations.