Research on Inventory Decision Based on Plant Simulation

The control of inventory cost plays a vital role in company operation process. It is not only affects the company's operating cost and daily operations, but also related to the realization of the company's business strategy directly. The research object of this paper is a sales company with a single product type. The sales company adopts a fixed inventory strategy $(\pmb{s,S})$ . In order to reduce the company's inventory cost, this paper analyzes in the cost composition of the company's two delivery methods and safety inventory, maximum inventory, check inventory interval, etc., using Plant Simulation software to build the inventory decision simulation model and optimize for its inventory strategy, and the multifactor two-level experiment and factor analysis were carried out through the Experiment-Manger module. The simulation results show that the “delivery option” has the greatest impact on the total cost of inventory between 90% and 95% of the service level, and it can be initially determined that the “delivery method” should be set to “Normal”, safety stock 20, the maximum inventory of 70, check the inventory interval of 1 month.