Using OptQuest to Solve a Two-Echelon Inventory Problem Subject to Service Level Constraints

• Main Authors: Margaret NathaniaSterling, 盧淑玲
• Other Authors: Shing-Chih Tsai
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/69004621529148098901

碩士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 101 === Inventory management is an important issue, because it is very difficult to decide whether minimizing the level of inventory or satisfying customer demand is more important, and thus companies face a dilemma in this regard. In this Master’s Thesis, we present a simulation model for the two-echelon inventory optimization problem using Arena and OptQuest subject to service level constraints, with the objective being to minimize the total inventory cost when the decision variables are the reorder point and reorder quantity. In the example examined in this work, there are three retailers; and one warehouse, with each adopting a continuous inventory control review (R,Q) policy. The results show that the proposed method is very capable of solving stochastic problems, and that it can find the best combination of our decision variables without the hundreds, or even thousands of calculations that traditional mathematical approaches need to analyze complex supply chain systems. We thus recommend using Arena with OptQuest to solve such complex problems.