on its inventory investment and sets a high inventory
holding cost to drive down its inventory, eliminate
potential obsolescence, and release the capital that
would otherwise be tied up in inventory. As such, the
fundamental inventory simulation-optimization problem
is to find the optimal inventory polices which, in
this study, are the values of s and S, so as to minimize
the total inventory holding, ordering, and stock-out
costs.
on its inventory investment and sets a high inventoryholding cost to drive down its inventory, eliminatepotential obsolescence, and release the capital thatwould otherwise be tied up in inventory. As such, thefundamental inventory simulation-optimization problemis to find the optimal inventory polices which, inthis study, are the values of s and S, so as to minimizethe total inventory holding, ordering, and stock-outcosts.
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