The use of simulation instead of traditional parametric methods in inventory control

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F23%3A00011494" target="_blank" >RIV/46747885:24310/23:00011494 - isvavai.cz</a>
Result on the web
<a href="https://drive.google.com/file/d/14_dFM8pzjhSr8YqAOVRtWHDIZm9Bg5Pp/view" target="_blank" >https://drive.google.com/file/d/14_dFM8pzjhSr8YqAOVRtWHDIZm9Bg5Pp/view</a>
DOI - Digital Object Identifier
—

Result language
angličtina
Original language name
The use of simulation instead of traditional parametric methods in inventory control
Original language description
In this article, we verify that the use of the past stock movement simulation with local search, where minimal reorder point is set by linear regression and maximal reorder point comes from bootstrapping, brings real economic savings in the area of holding and ordering costs. We use real input data coming from a company operating in the automotive industry to compare the best achieved holding and ordering costs in continuous review fixed order quantity inventory control policy where the reorder point calculation is currently based on the traditional parametric method of the moving average. The results of our experiments prove that the past stock moving simulation with the local search, bounded by linear regression and bootstrapping, outperforms traditional parametric methods in achieving the best holding and ordering costs. Application of this modified approach would bring real economic savings at all three examined production plants. The savings in the percentiles of 60 – 90 % time-series are in the range of 33 – 35 % of costs.
Czech name
—
Czech description
—

Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Similar results(10)