Inventory System Modeling: A case of an Automotive Battery Manufacturer

Production systems necessarily feature both detail complexity, the effect of having many variables, and dynamic complexity, the effect of time and spatial separation, non-linearity, and counter-intuitive relationships between cause and effect. This paper presents a system dynamics modeling of a Nigerian automotive battery production organisation. Policy runs of the system simulation were done to evaluate the impact of the size and pattern of demand, initial conditions, facility capacities, scrap rates, and material delays on raw material usage rates, production, and unfilled orders. This was with a view to meeting demands, highlighting the potential benefits of alternative policies, and engendering team consensus among decision makers through the generation of a shared vision.