1. A SIMULATION MODEL TO ANALYZE AN INVENNTORY SYSTEM FOR DETERIORATING ITEMS WITH SERVICE LEVEL CONSTRAINT.
- Author
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Mohammadmahdi Alizadeh, Hamidreza Eskandari, and Seyed Mehdi Sajadifar
- Subjects
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SIMULATION methods & models , *OPERATIONS research , *DATA modeling , *BUSINESS development , *STORAGE & moving industry - Abstract
In this paper, an inventory system for continuous decaying items with stochastic lead time and Poisson demand is assumed. Since the products are deteriorating and demand is stochastic, it is possible to deliver less than customers' demand to them. Thus, a constraint is introduced which guarantees a specific service level. Shortages are allowed, and all the unsatisfied demands are backlogged. Moreover, replenishment is one for one. Our objective is to minimize the expected long-run total cost of the inventory system. Since the stochastic lead time and service level constraint make the analytical model extremely complicated, simulation modeling approach is applied. The simulation model is validated by statistical hypothesis test for the deterministic lead time case. Then the optimizer module of the simulation software, OptQuest, is used as a simulation-based optimization tool to find near-optimal solutions for a number of examples with stochastic lead time. [ABSTRACT FROM AUTHOR]
- Published
- 2017