Parameters

Initial Settings

Supply line (SL)

Initial Value = 650 items = Desired supply Line (DSL)

Goods Inventory (GI)

Initial value = 125 items = Desired Goods Inventory (DGI)

Order Rate (OR)

Initial Value = 25 items/day = Desired Order Rate (DOR)

Order Receipt Rate (ORR)

Initial Value = 25 items/day

(Order Rate (OR) = Desired Order Receipt Rate (DORR))

Order Delivery Rate (ODR)

Initial Value = 25 items/day = Order Receipt Rate (ORR)

Supplier’s Order Processing Time (ST)

15 days

Minimum Order Quantity (MOQ)

20 items/order

Transport time (TT)

10 days

Time to Store (TS)

1 day

Expected Demand (ED)

25 items/day

Inventory Days of Sales (IDS)

5 days

Inventory Holding Cost (IHC)

30% of items value annually

Ordering Cost (OC)

3?order

Cost of goods

5?item

Price

10?item

Accounts Payable (AP)

Initial Value = 0?o:p>

Cash Payments (CP)

Initial Value = 0?o:p>