Abstract
This paper focus on inventory strategy of manufactures on the basis of bulk raw material supply provided by railway through trains. The outbound quantity of materials is rely on the stochastic output, such as the probability distribution of daily sales volume of certain products, production breakeven point and the designed capacity of progressive assembly line. The inbound quantity is determined by the railway train diagram and landed weight in accordance with orders. The time step method is used to obtain optimum solution by computer simulation. The model is composed of inventory holding costs, ordering costs based on order discount, procurement constant expense and material shortage costs. One example with given demand probability distribution and certain railway cargo transportation timetable is simulated by MATLAB program. The study reveals that computer simulation is more adequate for mass-production scale manufactures to make inventory management decisions. The result illustrates that order quantity and departure time-interval of through train play more important role in inventory simulation system.
Published Version
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