Simulating EOQ, Wagner-Whitin, (Q,r) and (s,S) inventory models in a pharmaceutical company: A case study

This paper presents a case study on simulating four well known inventory policies on real-life data of a large pharmaceutical company in Belgium. We describe detailed procedures for applying these policies and calculating the corresponding costs and backorder levels. The results indicate a strong trade-off between costs and backorders with none of the studied policies being dominant or dominated with respect to both costs and backorders. Other results include a measure of the total cost sensitivity to the holding cost percentage and a lower bound on the total costs, provided by applying the Wagner-Whitin model.

ISBN:978-84-9769-249-6

Jaar van publicatie:2009