Justification of a material flow management mechanism for PE "Dominanta Plus"

Students Name: Hrynchyshyn Roman Mykolaiovych
Qualification Level: magister
Speciality: Logistics
Institute: Institute of Economics and Management
Mode of Study: part
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: Hrynchyshyn R.M., Hryniv N.T. Justification of a material flow management mechanism for PE «Dominanta Plus». Master’s qualification work. - Lviv Polytechnic National University, Lviv, 2022. Extended abstract. Management of material flows at an industrial enterprise is the basis for optimizing technological processes of production, material and technical support, transportation and sales of products, rationalization of document flow, design of production, warehouse and auxiliary premises, creation of highly efficient communication infrastructure and organizational management structures. The issue of material flow management at the enterprise is an important component of the study, because the successful functioning of any enterprise directly depends on the competent construction of the enterprise’s logistics system and flow management system. Management of logistics activities of the enterprise is an important component of business operations, as it affects internal processes and relations with customers. The management of material flows has a leading role in the operational management of the enterprise, in the timely delivery of products and especially in ensuring the improvement of production efficiency, since all issues related to the use of production resources in time and space are solved within this framework. The material flow management mechanism is associated with the implementation of specially developed management procedures, the basis of which is planning, ensuring production, sales, storage and transportation as a single material flow. Skillful management of material flows allows you to increase the organizational and economic stability of business entities on the market of goods and services, minimize aggregate costs and increase the profitability of enterprises. Theoretical and applied issues of rationalization of the management of material flows of the enterprise in the context of their implementation of logistic functions are reflected in the works of many domestic scientists, in particular: L. Achkasova [1], E. Krykavskyi [2], V. Kulika [3], M. Grigorak [3] ], L. Kostyuchenko [3], A. Ovdienko [4], I. Lutsenko [4], N. Chornopyska [5], N. Chukhrai [6], O. Girnoi [6] and others. which consider the issues of accelerating the movement of material flows, reducing the volume of aggregate stocks, optimizing the cost structure, increasing the level of logistics service, etc. Study object - PE «Dominanta Plus». Scope of research - the material flow management processes of PE «Dominanta Plus». Goal of research - theoretical substantiation and development of methodical and practical principles of material flow management of the production enterprise. Briefly put research results. PE «Dominanta Plus» produces PVC windows and glazed window structures. The company is increasing the production of aluminum products, of course. PE «Domianta Plus» has a centralized supply system. The basis of this system is the existence of a single center for ordering goods. The supply of products to consumers is carried out in strictly defined terms under the terms of the supply contract. PE «Dominanta Plus» uses its own long-term storage warehouses with an area of 3,000 m2, of which: the warehouse for raw materials and components is 2,000 m2 and the warehouse for finished products is 1,000 m2. In the process of calculating ABC-XYZ analysis of components for the production of metal-plastic windows, it was found that outside the JIT supply area, a category of parts such as curtains, locks, fastening plates, drains, stapes and seals is formed that are most suitable for the production of components for metal-plastic structures. The JIT supply area includes such components as: profile, metal, fittings, double-glazed windows. It is profitable for the enterprise to purchase these components from suppliers. Тhe key task of PE «Dominanta Plus» is also supplier selection. In the process of solving the task of choosing a supplier of metal profiles, it was found that the most suitable supplier is the company «Salamander» (Germany). The optimization of transport processes plays an important role in the efficiency of material flow management of PE «Dominanta Plus». Today, it can be stated that the turnover of PE «Dominanta Plus» has stable dynamics, but the changes in the market situation, which are associated with the protracted war of Russia against Ukraine, do not allow the enterprise to be confident of positive dynamics in the future, therefore the enterprise needs to actively develop its sales network, to enter new sales markets, it would also be advisable to pay attention to the expansion of the product range in order to be able to satisfy the tastes and preferences of the most demanding consumers even in the difficult times of Russian aggression. Keywords: material flows, production enterprise, service, stocks, management, customer, logistics chain, quality, transportation, warehousing, infrastructure. References. 1. Achkasova L.M. (2021) A model of material flow management in logistics systems. Economics of the transport complex, Vol. 37. P. 36-48. 2. Krykavskyi E.V., Pokhilchenko O.A., Fertch M. (2019) Logistics and supply chain management. Lviv, 848 p. 3. Kulyk V.A., Hryhorak M.Yu., Kostyuchenko L.V. (2013) Logistics management: education. manual K.: Logos, 2013. 268 p. 4. Ovdienko A.O., Lutsenko I.S. The concept of the supply chain as an element of the logistics paradigm. URL: http://conf.management.fmm.kpi.ua/proc/article/ view/124911 5. Chоrnopyshka N.V. (2008) Methodical approaches to evaluating the logistic activity of the enterprise. Bulletin of Lviv Polytechnic University, No.23 (623). P. 265-271. 6. Chuhrai N.I., Girna O.B. (2006) Shaping Supply Chains: Issues in Theory and Practice: Monograph. Lviv: «Intellect-Zahid» Publishing House, 231 p.