Logistic capacities allocation algorithm of industrial and logistics complexes between public and private consumers

Economic & mathematical methods and models

Functioning of the logistic system of the military organization of the country is directly related to the condition of its infrastructure, whose important component is stationary storage objects of material and technical resources and technical means. Equipment and facilities of these objects affect preservation of property and timely provision with relevant material and technical means of special consumers and, consequently, economic and operational efficiency of their operation. Improper storage of material resources leads to their deterioration and impossibility of their use in everyday activities. In its turn, unsustainable operation of storage capacities may cause not only a significant increase in financial expenses which is unacceptable with limited funding, but also increase the time to provide departments with supplies. Due to feasibility of developing stationary storage objects Russian Ministry of Defense decided to form a system of production and logistics facilities on the basis of public-private partnerships. The paper deals with the specifics of production and logistics facilities operation as centers of joint military and civilian use. It is shown that the key to the success of production and logistics centers functioning project is to create a distribution algorithm of logistical capacities of these centers between the military and civilian customers. An algorithm for distribution of logistics capacities, based on attaching of the military user’s needs to the level of military threats. A technique for calculating the value of logistics capacities intended for servicing the military user. It is shown that the essence of controlling the distribution of logistics capacities is to replace commercial orders with orders from a military customer, depending on the current geopolitical situation. A model is proposed to reserve additional capacities and methods of assessing the costs of the state budget to pay for the services of the production and logistics complex operator. The results of the research are of interest not only for specialists of government bodies (represented by the Ministry of Defence of the Russian Federation), but may be useful for management teams of logistics organizations.