Abstract

In order to compete, companies pursue policies to minimize operating costs. Among these policies, inventory management policy is of great importance. The most important step of inventory management policy is to determine critical inventory items. In this study, the stock data of a company operating in Izmir province is used. ABC analysis was used to classify inventory items and determine critical inventory items. In order to analyse the existing inventory management policy of the enterprise over the determined inventory items, simulation model is developed by using ARENA simulation programming language and this model is described in detail. With the simulation model, confidence intervals are established and analyses are performed for many important performance criteria such as order pick-up time, item-based order pick-up times, staff utilization, purchase utilization, staff queue length, purchase queue length and number of orders in terms of order source.

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