INSIM: An Interactive Inventory Simulation

Abstract

Inventory systems exhibit behavior important in systems analysis. They lend themselves to “solution” both via simulation and formal analysis, and provide a basis for demonstrating varying levels of system sophistication. [7] Under conditions of certainty, inventory control is simple. With demand and lead time know-n, a new order would be placed when the number of items on hand plus the number of units on order will exactly satisfy demand over the time period required for the new order. The inventory level will fall to zero each day an order is received and demand can never exceed the inventory level. [3] Management under certainty is, of course, not realistic and the volatility of demand and the unreliability of lead time combined to exacerbate the inventory control problem.