Research Article
Simulation Study of Inventory Performance Improvement in Consumer Products Trade Business Unit Using System Dynamic Approach
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@INPROCEEDINGS{10.1007/978-3-030-15357-1_33, author={Maseresha Agumas and Jeyaraju Jayaprakash and Melkamu Teshome}, title={Simulation Study of Inventory Performance Improvement in Consumer Products Trade Business Unit Using System Dynamic Approach}, proceedings={Advances of Science and Technology. 6th EAI International Conference, ICAST 2018, Bahir Dar, Ethiopia, October 5-7, 2018, Proceedings}, proceedings_a={ICAST}, year={2019}, month={3}, keywords={Stock and flow diagram Inventory replenishment Simulation System dynamics}, doi={10.1007/978-3-030-15357-1_33} }- Maseresha Agumas
Jeyaraju Jayaprakash
Melkamu Teshome
Year: 2019
Simulation Study of Inventory Performance Improvement in Consumer Products Trade Business Unit Using System Dynamic Approach
ICAST
Springer
DOI: 10.1007/978-3-030-15357-1_33
Abstract
This paper focused optimal inventory study on multi-product, multi-period, perishable products replenishment quantity in consumer product trade business unit (CPTBU) warehouse in Bahir Dar city. We proposed system dynamics method to improve optimal replenishment quantity of expired and stock-out products and saved the total operation cost such as loss of sale, expired cost, holding cost and ordering cost using vensim software. This study proposed 34.7% improved replenishment quantity of expired products, 32.2% replenishment quantity of stock-out products and totally this proposal saved 43,000US$(1.2 million birr) of operational cost per year.
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