Enterprise Inventory Management and Simulation

Abstract:

Inventory is an important link in supply chain, according to characteristics and objectives of inventory control, the reasonable safety inventory, order point, the highest inventory and inventory strategy were determined based on historical sales data. Using Witness simulation software, the optimal strategy was selected from nine inventory strategies by running simulation model for one year. If goods shortage was allowing, the seventh schemes (72000,158100) was better ,the minimum total cost was 888158 yuan ; considering allowing a small amount of shortage, the cost of eighth schemes ( 82000,158100) was least of 1095167; the third scenarios (92000,138100) was selected if without shortage, and the minimum total cost was 1254909 yuan. This shows, the application of computer simulation to assist in the management of inventory is scientific and feasible, it can help enterprises to save the order and operation cost.

• Periodical: Advanced Materials Research (Volume 933)
• Pages: 874-878
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.933.874
• Online since: May 2014
• Authors: Yun Rui Wang
• Keywords: Inventory Management, Inventory Strategy, Model, Simulation, Witness

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