A simulation-based approach to illuminate inventory control decisions: policy identification and optimisation for stakeholder informed strategies

Abstract

This paper utilises a simulation-based approach to address challenges in identifying inventory control strategies for modern manufacturing companies. It follows a systematic framework, beginning with a critical analysis of traditional inventory control methods and their inherent complexities. By drawing from diverse research sources, it investigates the root causes of shortcomings in current inventory management practices. The study presents a dynamic simulation model designed to capture the intricate dynamics of inventory control policies. Leveraging stakeholder engagements and input data, the simulation model functions as a virtual laboratory for testing and refining strategies. Evaluation of these strategies identifies strengths, weaknesses, and opportunities for optimisation. By integrating rigorous analysis with stakeholder insights, the resulting strategies are theoretically robust, practically feasible, and aligned with organisational goals. The paper offers a comprehensive framework for developing informed and adaptive inventory control strategies, combining empirical research with simulation-based insights. The findings aim to advance the field of inventory management, offering actionable recommendations for optimising inventory control practices in manufacturing contexts.