Simulation Model for Assessment of Non Deterministic Inventory Control Techniques

Abstract

Inventory procurement is one of the most important aspects of the supply chain. This aspect is supported by specific numerical techniques to determine the optimal lot sizes to ensure prompt supply without increasing operational costs for retailers and providers. However, the practical performance of these techniques is only evaluated after implementation, which can lead to unnecessary risks and costs. In such case, simulation can provide the means to evaluate the dynamic performance of these techniques to reduce this risk. The present work describes the development of an open computational simulation code for two non-deterministic inventory control techniques. The functionality of this code provides insights regarding the disadvantages of considering just the static numerical parameters of the model and the advantages of the dynamic aspect of simulation. This contribution can be used by the academic researcher or professional within the logistic field to evaluate and improve their strategies for inventory procurement.