Simulation of allocation policies for a serial inventory system under advance demand information

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Abstract

In this paper, we simulate allocation policies for a two-stage inventory system that receives perfect advance demand information (ADI) from customers belonging to different demand classes. Demands for each customer class are generated by independent Poisson processes while the processing times are deterministic. All customers in the same class have the same demand lead time (the difference between the due date and the requested date) and back-ordering costs. Each stage in the inventory system follows order-base-stock-policies where the replenishment order is issued upon arrival of a customer order. The problem requires a fast and reliable method that determines the system performance under different policies and ADI. Thus, we employ discrete-event simulation to obtain output parameters such as inventory costs, fill rates, waiting time, and order allocation times. A numerical analysis is conducted to identify a reasonable policy to use in this type of system.
Original languageEnglish
Title of host publication2019 Winter Simulation Conference, WSC 2019
EditorsN. Mustafee, K-H.G. Bae, S. Lazarova-Molnar, M. Rabe, C. Szabo, P. Haas, Y-J. Son
Pages1871-1882
Number of pages12
ISBN (Electronic)9781728132839
DOIs
Publication statusPublished - Dec 2019
Event2019 Winter Simulation Conference (WSC 2019) - National Harbor, MD, USA, National Harbor, United States
Duration: 8 Dec 201911 Dec 2019
http://meetings2.informs.org/wordpress/wsc2019/

Conference

Conference2019 Winter Simulation Conference (WSC 2019)
Abbreviated titleWSC2019
CountryUnited States
CityNational Harbor
Period8/12/1911/12/19
Internet address

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