Evaluation of a (R, s, Q, c) Multi-Item Inventory Replenishment Policy Through Simulation

In this paper, the case of a cardboard box marketing firm is studied and a (R,s,Q,c) inventory replenishment policy is proposed and evaluated by means of discrete event simulation. The complexity of this multi-item inventory problem requires a fast and reliable method of determining the operating conditions that optimize the inventory control. Simulation techniques can be effectively used to determine an adequate ordering policy for this type of problems. Several ordering options were analyzed and compared to find the policy that best accomplishes the firm’s organizational objectives. The simulation model built allows the dynamic change in the demand pattern for each item of the inventory. The results revealed that the implementation of the multi-item replenishment policy can reduce total investment and maximize customer service, while maintaining the business efficiency.

• Type: Conference
• Year: 1997
• Where: WSC
• Authors: Carlos B. Ramirez Cerda, Armando J. Espinosa de los Monteros F.
• Keywords: Inventory Replenishment Policy, Modeling And Simulation, Multi-item Inventory Problem, Replenishment Policy, WSC 1997