The article examines the issues of sustainable development of foundry enterprises. The methods of independent demand forecasting and MRP demand planning effectiveness are considered, particularly, Lot-For-Lot (L4L), Economic Order Quantity (EOQ), Least Total Cost (LTC), Least Unit Cost (LUC). In our study, we use the real statistical data of one of the most powerful suppliers of castings to predict demand and to check the applicability of the mentioned methods for the development of production plans. We keep in mind that the probability of any method of forecasting is low in terms of war. However, these calculations are required to plan the operation activity both for production and distribution. So, our example is just a case of how the forecasting results can be used in the managerial process, but not the strict recommendation to use the trend of sales to predict the specific quantity of produce (or imported) castings. Further use of the predicted amount of the need for castings includes two constituents: guaranteed demand, calculated by the contracts signed, and independent demand, defined based on the trend function. Using the predicted demand size and methods of operational management, it was substantiated that the optimal value of trade volume (and production consequently) can be achieved in a three-month period. This time span allows for minimizing the costs and therefore rational use of resources. The calculated financial results are good evidence of the effective use of operational management methods to improve the supply of castings. Besides, the applicability of these methods of operational management to improve the activities of foundry enterprises is a good foundation for developing production in Ukraine in order to avoid logistics risks. In conclusion, it is stated that the specified methods allow for achieving the effectiveness of domestic production of castings in compliance with the goals of sustainable development of the foundry industry.
Author Biography
Victor Tryhuba, National University of Water and Environmental Engineering, Rivne
