COSTS OF INVENTORIES AS A COMPONENT OF LOGISTICS COST OF COMPANIES IN THE LOWER SILESIA REGION Michal Biernacki PhD, MSc, Eng. Wroclaw University of Economics, Wroclaw, Poland (michal.biernacki@ue.wroc.pl)

THE COSTS OF LOGISTICS LOGISTICS PROCESSES material purchasing transportation storage sales of finished goods the necessary customer service standards a proper market position of an enterprise

inventory depletion costs COSTS OF INVENTORIES inventory replenishment costs inventory carrying costs inventory depletion costs

89 surveys were dispatched RESEARCH FINDINGS June and August, 2017 online surveys manufacturing companies in the SME segment, the Lower Silesia region in Poland 89 surveys were dispatched 46 received a response

RESEARCH FINDINGS Does your company distinguish costs of inventories? If not, are there any plans for introducing such an approach within the coming 12 months? If so, do you distinguish the inventory replenishment costs, inventory carrying costs, inventory depletion costs? Do you apply inventory management methods? Can distinguishing costs of inventories have a positive influence on operations management in the company? Can distinguishing costs of inventories have a positive influence on cost management procedures in the company?

RESEARCH FINDINGS Figure 1. Company distinguish costs of inventories Source: Author’s research based on the survey results

RESEARCH FINDINGS Figure 2. Plans for introducing costs of inventories within the coming 12 months Source: Author’s research based on the survey results

RESEARCH FINDINGS Figure 3. Distinguishing the inventory replenishment costs, inventory carrying costs, inventory depletion costs Source: Author’s research based on the survey results

RESEARCH FINDINGS Figure 4. Applying inventory management methods Source: Author’s research based on the survey results

RESEARCH FINDINGS Figure 5. Distinguishing costs of inventories have a positive influence on operations management in the company Source: Author’s research based on the survey results

RESEARCH FINDINGS Figure 6. Distinguishing costs of inventories have a positive influence on cost management procedures in the company Source: Author’s research based on the survey results.