A Simulation of Inventory Management for Spare Part Supply of Trucks

SYNOPTIC ABSTRACT

This paper develops a simulation procedure for the inventory management of a network of dealers with respect to certain spare parts. The simulation model is based on a manufacturer's delivery system and sales statistics, and on the dealers' storage restrictions. The simulation results help to get a better understanding of variations in the demand for spare parts, which a manufacturer observed, and to improve the inventory system.

Key Words and Phrases:

• simulation
• inventory management
• random number generation
• random variable generation
• two-stage procedure