Inventory control: A simulation and decision support system

The creation of inventories occurs in logistic chains of goods flow. This r esults from both technological conditions and from the rationalisation requ irements of organisational activities. In logistic chains within single com panies, there are inventory systems of different levels. This article prese nts an example of a two-level system of inventory control in construction c ompany logistics. In order to investigate and analyse this system, a simula tion model was employed. The results obtained from the simulation were used to select input parameters which radically influence the functioning of th e system. Selected parameters were used to build a criterion function. Tota l inventory costs are presented as a regression function. The analytical fo rm of a cost function arrived at in this way allows the examination of tend encies in forming logistic costs in relation to controlling changes in vari ables. Here we propose employing simulators of inventory systems in decisio n support systems (DSS) for the logistics of a company's physical supply of products, in-process materials and raw materials.