Order level optimization in inventory management using arena simulation model

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.