Stochastic discrete-time model and simulation of inventory management system

Abstract

Inventory management plays a very important role in logistics system. This study presents a discrete-time model for regularly order inventory management system considering the randomicity of receiving goods of time and the volume of ordering determined by inventory difference. With the application of Simulink toolbox in MATLAB, an example of block diagram model in z-domain is built to simulate the dynamic change process of the inventory system, so that it can effectively assist and support decision-making. © Maxwell Scientific Organization, 2013.