A Simulation Approach Paradigm: An Optimization and Inventory Challenge Case Study

TL;DR

This paper uses simulation to optimize automotive inventory management, balancing supply and demand to maximize profit, and provides decision-making insights for management regarding inventory and staffing.

Contribution

It introduces a simulation-based approach to address inventory and demand challenges in the automotive sector, aiding strategic decision-making.

Findings

Optimal demand matching with stock levels identified

Recommendations for inventory and staffing decisions provided

Simulation results support profit maximization strategies

Abstract

The paper presents a simulation on automotive inventory and stock issue, followed by evaluated performance of automotif Sector Company, focused on getting optimum profit from supply and demand balancing. Starting by evaluating and verification of customer's document until car delivered to customer. Simulation method of performance is used to evaluate company activity. excess demand of car by customer, not eligible customer to rented a car, number of customer who served and number of customer who served including the driver, the last result is number of optimum demand that match with the stock or supply of car by the company. Finally, board of management should be making decision; the first decision is buy the new car for meet with the demand or second decision is recruit new staff for increasing customer service or customer care.