File Name: Decision Analysis – Inventory Control
Location: Modeling Toolkit | Decision Analysis | Inventory Control
Brief Description: Creates and simulates a simple inventory control model, which is a precursor to more advanced economic order quantity models
Requirements: Modeling Toolkit, Risk Simulator
This model shows a simple inventory control model, with various inputs such as order cost, carrying or inventory cost, and the projected annual demand, which is deemed to be uncertain and can be simulated. The idea of this model is to allow for the ability to view the various interactions among the input variables and the resulting orders that need to be placed per year. Figures 28.1 and 28.2 illustrate the inventory control model and its output charts. For more advanced and complex inventory control models, see the Optimization – Inventory Optimization model, or see the other models dealing with Economic Order Quantity applications (Decision Analysis – Economic Order Quantity and Inventory Reorder Point as well as Decision Analysis – Economic Order Quantity and Optimal Manufacturing).
Figure 28.1: Inventory control model
Figure 28.2: Inventory control charts
