Simulating low demand asset availability in base supply with Q-GERT

ABSTRACT

Many widely used analytic inventory models include the assumption that item lead times are randomly and independently distributed about a stationary mean value. The models use a generalized form of Palm's Theorem to compute expected item back-orders as a measure of system performance. In actual practice, most large scale inventory systems do not conform to this assumption; demands which create backorders lead to expedited item delivery times. This research investigates the significance of the errors which are generated when the analytic model is used to represent such an inventory system. The methodology involved simulating the inventory system with Pritsker's Q-GERT.

REFERENCES

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