Evaluating forecasting algorithms and stocking level strategies using discrete-event simulation

Abstract

The part division of a major automobile manufacturer is analyzing methods of managing the supply chain of automotive service parts. That analysis includes parts flowing from its warehouses to its dealers, and from dealer to dealer. This paper describes the use of simulation to evaluate various part forecasting and level setting strategies for automobile dealer part inventories, and the impact that implementing a common strategy across a set of dealers could have on overall inventory levels.