Simulation Modeling of a Multilevel Inventory Management System in Distribution Systems

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MAGAZINE  №5 (94) October 2019


CATEGORY  Simulation modelling Inventory management



 The method of numerical simulation is used to study the effect of parameters of a simple discrete flow of inventory through a logistic three-level distribution system, as well as the parameters of the system itself, on the universal characteristics of its efficiency — relative levels of current stocks in the system and deficit indicators for end users. By flow parameters we mean the level of its power and its variation; under the system parameters - the type of applied inventory management (IM) model and the speed of reaction to the requirements for the supply of the next batch of inventory. The flow of consumer requirements arriving at the lower level of the system and causing inventory movement through the system corresponds to the Poisson law. Four basic ultrasound models IM are tested, and in each case the same model is used at all levels of the system. As a result, we obtained the corresponding number (total - 66, given in article - 22) of the experimental dependences and the regression equations adequate to them. Their brief interpretation is given from the point of economic aspects of distribution logistics. Conclusions are drawn regarding the nature of the use of the identified dependencies and the directions for further research on this issue. The study (its object and applied technologies) is not strictly tied to either a specific area of logistics (trade, industry, logistics services, etc.), or to the hierarchical level of the object of modeling (industry, distribution company, a single-plant enterprise, a production association, a large production unit, etc.).

 Electronic version

 Keywords:  inventory management distribution systems multilevel distribution systems simulation simulation modelling integrated logistics material flow Stochastic efficiency assessment

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