<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In this study, we employ system dynamics to analyze the interplay between various factors influencing inventory cost control, resulting in a comprehensive subsystem model. The inventory strategy subsystem, based on the pipeline delay function, and the inventory cost subsystems, considering the actual situation of the enterprise, are combined to construct the inventory cost control system dynamics model. According to the validity test of the inventory cost control model, there are less than 10% simulation errors in the total transportation cost and total inventory cost data of the enterprise, and the model’s reliability is high. The simulation experiment of the model on the inventory cost control of the enterprise shows that the total inventory cost decreases to 4,398,330 yuan on the 100th day after shortening the order delay time, and the total inventory cost decreases by 1,160,450 yuan on 32 days after controlling the arrival delay time. This dynamic model proves highly effective and offers a dependable approach to managing inventory costs across various enterprises.</p>
</abstract>

In this study, we employ system dynamics to analyze the interplay between various factors influencing inventory cost control, resulting in a comprehensive subsystem model. The inventory strategy subsystem, based on the pipeline delay function, and the inventory cost subsystems, considering the actual situation of the enterprise, are combined to construct the inventory cost control system dynamics model. According to the validity test of the inventory cost control model, there are less than 10% simulation errors in the total transportation cost and total inventory cost data of the enterprise, and the model’s reliability is high. The simulation experiment of the model on the inventory cost control of the enterprise shows that the total inventory cost decreases to 4,398,330 yuan on the 100th day after shortening the order delay time, and the total inventory cost decreases by 1,160,450 yuan on 32 days after controlling the arrival delay time. This dynamic model proves highly effective and offers a dependable approach to managing inventory costs across various enterprises.

Simulation study of inventory cost control based on system dynamics

Shenzhen Xinnanshan Holding (Group) Co., LTD. Strategic Research Department

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Simulation study of inventory cost control based on system dynamics"}

In this study, we employ system dynamics to analyze the interplay between various factors influencing inventory cost control, resulting in a comprehensive...

Simulation study of inventory cost control based on system dynamics

Published Online: May 30, 2024

Page range: -

Received: Feb 10, 2024

Accepted: Apr 17, 2024

DOI: https://doi.org/10.2478/amns-2024-1273

Keywords
System dynamics, Pipeline delay function, Dynamic relationships, Inventory costs

© 2024 Yanhong Wang, et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Simulation study of inventory cost control based on system dynamics

Published Online: May 30, 2024

Page range: -

Received: Feb 10, 2024

Accepted: Apr 17, 2024

DOI: https://doi.org/10.2478/amns-2024-1273

KeywordsSystem dynamics, Pipeline delay function, Dynamic relationships, Inventory costs

© 2024 Yanhong Wang, et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
System dynamics, Pipeline delay function, Dynamic relationships, Inventory costs