Simulation is the imitation of a real-world operation or process over time. Warehouse inventory management played an
important role in improving customer service and reducing stock outs. Managing warehouse inventory is a challenging
task and to address this challenge, we use simulation application in warehouse inventory management. The purpose of
this paper is to use simulation in managing inventory of A Building Materials Trading Company in United Arab Emirates
(UAE). Firstly, we will develop a model to improve average inventory level, average lost sales, and percentage of
customer's dissatisfaction for the main component in the company which is cement. Secondly, we verify and validate our
developed model using Arena simulation software. Finally, some recommendations regarding reorder point, batch size
and target stock will be given to improve overall warehouse inventory management system.