Abstract

The supply chain of a case study in the embedded devices industry was examined from the perspective of a high service level for the delivery of one of its products. For this purpose, an agent–based object–oriented model of the supply chain with a quantity reorder system for the inventory management was developed. The historical demand data from the ERP system of the case study was examined and pseudo–random numbers for a Monte Carlo simulation of the supply chain was generated with it. The paper examines the performance of the supply chain by using a simulation with a stockout penalty and the percentage of items delivered from stock. Results from simulation show that no single solution for the reorder point and quantity with an optimal stockout penalty can be found. The simulation generated a solution for the minimum average penalty.