2018/06/19 by Anshul Agarwal, Agarwal, Anshul
Business, Management and Accounting · Decision Sciences · #Advanced Queuing Theory Analysis #Applications (stat.AP) #FOS: Computer and information sciences #FOS: Mathematics #Optimization and Control (math.OC) #Simulation Techniques and Applications #Supply Chain and Inventory Management
paper · pdf · doi:10.48550/arxiv.1806.07427
openalex publication_date 2018/06/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Inventory decision frameworks proposed in the literature for single-echelon supply chain systems rely on assumptions to obtain closed form expressions. In particular, two such frameworks - one conventional and the other with a demand undershoot - determine optimal reorder point for a desired β or Type-II service level. In this work we assess the accuracy and applicability of these frameworks with the help of a discrete event simulation framework developed in SimPy. While in several cases the closed form literature models under-predict the service level, and thus result in a higher reorder point and safety stock, we observe some situations where model predicted service levels match the simulated results with statistical significance.