A Proposed Interactive Inventory Control Simulation

A proposed interactive simulation model of inventory control in a physical distribution system is presented. This model is intended to provide an exercise in which a student can attempt to control inventory so as to achieve a specified level of customer service while minimizing total cost. The student must decide when and how much to order in an environment characterized by imperfect information about exogenous, stochastic demands and lead times. A programmed method of statistical inventory control uses the same information with the same demands and lead times to provide a comparative level of performance. Possible extensions of the model to more complex situations are described.