Computer simulation for stochastic inventory management

Despodov, Bojan and Anevska, Katerina and Iliev, Oliver and Despodov, Zoran and Zakeri, Ahmad (2021) Computer simulation for stochastic inventory management. Transport & Logistics: The International Journal, 21 (50). ISSN 2406-1069

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In this paper, the importance of inventory management for gaining a competitive advantage
of a certain enterprise is shown. Furthermore, the basic – deterministic model of
inventories is presented and the methodology for determining the optimal quantity of order
is given. In addition, the stochastic inventory model has been developed with a detailed
analysis of the uniform and normal distribution of demand probabilities. In order to
introduce the reader to the computer simulation of inventory management, a brief overview
of the general principles of simulation methods is given, with their advantages and
disadvantages. Moreover, a computer simulation of the management of inventories for a
specific case was performed by developing a software application in the Python
programming language. The results of the simulation modeling are shown in tabular and
graphical form. In the conclusion, an interpretation of the obtained results from the
execution of the program is given and proposed guidelines for further research are given by
simulating other parameters of the inventory, when the following occur as random
variables: order quantities, the level to be re-ordered, the cost of inventory and delivery
time. Validation of the mathematical model has been performed and it has been compared
with similar mathematical models based on which it has been shown that the results are
realistic and expected.

Item Type: Article
Subjects: Engineering and Technology > Other engineering and technologies
Divisions: Faculty of Natural and Technical Sciences
Depositing User: Zoran Despodov
Date Deposited: 10 Aug 2021 08:10
Last Modified: 10 Aug 2021 08:10

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