Warehouse Optimization in Uncertain Environment

This paper describes the warehouse stock optimization using two optimization algorithms for products belonging to different classes according to ABC and XYZ analysis. For simulation mathematical tool Matlab was used. The basic system dynamics model of the warehouse was built according to system dynamics methodology and then validated. Several ordering strategies were analyzed with a goal of producing lower total warehousing costs than the actual costs provided by the observed company. Together with total costs two restrictions had to be considered: no stockouts should occur and the warehouse capacity should not be exceeded.