Title: Analytical and simulation methods for the configuration of an efficient inventory management system in the wholesale industry: a case study
Authors: Christos Afentoulis; Christos Zikopoulos
Addresses: Department of Business Administration, School of Economics, Aristotle University of Thessaloniki, Greece ' Department of Business Administration, School of Economics, Aristotle University of Thessaloniki, Greece
Abstract: Methodical planning of procurement, implementation of systematic forecasting and configuration of efficient inventory management systems aid companies to stand against competition in today's global markets. Our research illustrates a way and means for confronting demand uncertainty, minimising costs and at the same time maximising customer satisfaction, by presenting a case study involving a small-medium wholesale enterprise. Specifically, we configure and apply a single SKU - inventory management system in Periferiaki Tires S.A. Exploiting academic knowledge on product classification, forecasting methods, material requirements planning techniques and simulation modelling, we analyse the existing inventory management system, identify shortcomings and propose improvements. Sequentially, we propose a new inventory management system to decrease overall inventory management costs and improve customer service. The benefits of the proposed system are verified through a simulation study and a corresponding statistical analysis. Our findings indicate that the proposed policy decreases significantly the total inventory cost and practically eliminates stock-out events.
Keywords: inventory management; logistics and supply chain management; simulation of supply systems; simulation modelling; wholesale industry; demand forecasting; ABC analysis.
International Journal of Business and Systems Research, 2021 Vol.15 No.6, pp.770 - 785
Accepted: 07 Dec 2020
Published online: 28 Oct 2021 *