Increasing Efficiency in Inventory Control of Products with Sporadic Demand Using Simulation

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F22%3A00009876" target="_blank" >RIV/46747885:24310/22:00009876 - isvavai.cz</a>

Result on the web

<a href="http://aip.vse.cz/doi/10.18267/j.aip.184.pdf" target="_blank" >http://aip.vse.cz/doi/10.18267/j.aip.184.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.aip.184" target="_blank" >10.18267/j.aip.184</a>

Result language

angličtina

Original language name

Increasing Efficiency in Inventory Control of Products with Sporadic Demand Using Simulation

Original language description

The goal of this paper is to examine whether in Q-system inventory control policy a combination of the reorder point exceeding order quantity lead to the minimal holding and ordering costs when dealing with sporadic demand. For this purpose past stock movement simulation is applied to the set of randomly generated data with different number of zero demand periods ranging from 10-90%. The outputs of the simulation prove that in situations when stock holding costs are too high the simulation tends to reduce average stock by overcoming periods between two demand peaks with increase in number of small replenishment orders and reaches lower stock holding and ordering costs. Furthermore, the correlation analysis proves that there is a statistically significant relationship (r = .847, p = .004) between the number of timeseries that reach the minimal holding and ordering costs under the control of reorder point ` replenishment order and the demand standard deviation affected by the evolving sporadicity. These findings can support the decision making linked with inventory management of products with sporadic demand and contribute to the development of business information systems.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta Informatica Pragensia

ISSN

1805-4951

e-ISSN

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Volume of the periodical

11

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

10

Pages from-to

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UT code for WoS article

001105626500006

EID of the result in the Scopus database

2-s2.0-85136684527