European practices in industrial inventory rationing as an element of city logistics

The article examines the European practices in industrial inventory rationing as an element of city logistics focused on saving material resources at all stages of the material flow and optimizing production and sales costs. The development of methods for inventory rationing at industrial enterprises is due to the need for effective management of material flows in production. The use of scientific methods for the development and optimization of the system of inventory rationing can ensure the sustainable development of industrial enterprises in terms of material flow management without additional investment. The aim of the paper is to study the European practices in inventory rationing at industrial enterprises with their subsequent approbation on the example of the Russian industrial enterprise. The authors analyze European models for rationing inventory, highlight the most prominent ones, conduct a study of the Russian experience in rationing, and compare methods for reducing material costs in Russia and a number of European countries. On the basis of the European and Russian models considered, the authors propose a method of inventory management based on the inventory rationing at an industrial enterprise, tested at LLC "Russian Quartz", which is taken as an example. Monitoring the excess of standard values and timely identification of the reasons for deviating overspending on the basis of the rationing system proposed by the authors will reduce the cost of key expandable materials for all types of products. Reducing the cost of raw materials and key expandable materials will, in turn, increase the profitability of manufactured products, which will have a positive effect on the company’s market positions. The achieved rhythm of production will allow to optimize the process of production planning and increase the number of products by reducing the level of downtime and delays due to the disruption of the supply of inventory. The proposed inventory management system based on the inventory rationing, from the point of view of optimizing the material flow, will contribute to the achievement of city logistics goals.