The Use of Numerical Simulation in the Development of Inventory Policy

Harrison S. Campbell

Expert InsightsPublished 1959

A discussion of the role of numerical simulation in the development of inventory policy. Numerical simulation is a computational program, reproducing the structure of a real-world organization, or of a simplified model of the organization. The advantages and disadvantages of analysis by simulation are described, as well as a random-sampling simulation model of an inventory system. This model is applied (1) to the effect on the costs of operating an inventory system when severe initial uncertainty exists concerning the mean demand rate or other demand characteristics and (2) to the effect of the inefficiencies resulting from the use of statistical estimates as the basis for setting stock levels.

Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 1959
  • Pages: 13
  • Document Number: P-1689

Citation

Chicago Manual of Style

Campbell, Harrison S., The Use of Numerical Simulation in the Development of Inventory Policy. Santa Monica, CA: RAND Corporation, 1959. https://www.rand.org/pubs/papers/P1689.html.
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