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Article

ORDER LEVEL OPTIMIZATION IN INVENTORY MANAGEMENT USING ARENA SIMULATION MODEL

DOI: 10.7708/ijtte.2021.11(2).06


11 / 2 / 257-266 Pages

Author(s)

Milica Mitrović - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -

Dražen Popović - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -

Milorad Vidović - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -

Gordana Radivojević - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -


Abstract

By adequately managing inventories, companies adjust demand and supply over time to provide the necessary goods to meet customer requirements and make a profit. A simulation is a great tool for optimizing inventory management by examining system behavior in a variety of settings. This paper presents a simulation model developed in ARENA software to optimize inventory management, i.e. to determine the level of inventory at which it is necessary to order goods for which the system generates minimal total costs.


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Acknowledgements:

This work is funded by the Ministry of Education, Science and Technological Development of the Republic of Serbia within the project TR 36006 for the period 2011-2020.


References:

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Vidović, M. 2020. Lecture material from the course Simulations of logistics systems. University of Belgrade - Faculty of Transportation and Traffic Engineering, Belgrade, Serbia.

 

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