Validation of Inventory models for Single-echelon Supply Chain using Discrete-event Simulation
Optimization and Control
2018-06-21 v1 Applications
Abstract
Inventory decision frameworks proposed in the literature for single-echelon supply chain systems rely on assumptions to obtain closed form expressions. In particular, two such frameworks - one conventional and the other with a demand undershoot - determine optimal reorder point for a desired or Type-II service level. In this work we assess the accuracy and applicability of these frameworks with the help of a discrete event simulation framework developed in SimPy. While in several cases the closed form literature models under-predict the service level, and thus result in a higher reorder point and safety stock, we observe some situations where model predicted service levels match the simulated results with statistical significance.
Cite
@article{arxiv.1806.07427,
title = {Validation of Inventory models for Single-echelon Supply Chain using Discrete-event Simulation},
author = {Anshul Agarwal},
journal= {arXiv preprint arXiv:1806.07427},
year = {2018}
}