201. A COMPARATIVE STUDY OF INVENTORY MODELLING: DETERMINISTIC OVER STOCHASTIC APPROACH.
- Author
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Kumar, Lalji, Ghoshi, Pratima Singh, Saxena, Shreyashi, and Sharma, Kajal
- Subjects
- *
STOCHASTIC analysis , *COMPARATIVE studies , *INVENTORIES - Abstract
This research study provides a comprehensive comparison of two critical approaches to inventory modelling-deterministic and stochastic. The deterministic model employs traditional optimization techniques to optimize complex systems, while the stochastic model leverages Particle Swarm Optimization (PSO) simulations to tackle the challenges posed by uncertain dynamics. This approach enables us to develop effective strategies for optimizing complex systems. After conducting sensitivity analyses, it was found that the deterministic model oversimplifies demand dynamics, whereas the stochastic model more adeptly captures market uncertainties. As a result, this study suggests that businesses adopt stochastic approaches to inventory management to better engage in adaptive decision-making, contingency planning, optimal resource allocation, risk mitigation, and realistic performance metrics. The research provides valuable insights for businesses seeking to navigate the complexities of modern supply chains. [ABSTRACT FROM AUTHOR]
- Published
- 2024