Computer-Aided Simulation Model of Smoked Meat Inventory with Price Breaks.

Computer systems provide indispensable support in constructing, solving and implementing simulation models. This paper discusses a smoked meat inventory model with simulated demand. In order to make a more precise estimate of the demand, the proposed model implies the use of the beta distribution. Simulated demand values, generated by means of a computer, represent the inputs in the inventory model with price breaks. This model is characterized by taking into account the possibility of decreasing the purchase price when the ordered quantity is increased. In addition, the management needs to consider the fact that unsold smoked meat products past use-by date directly increase the costs and thus reduce store operation efficiency. In this model, for each simulated demand rate the order quantity is determined which results in minimum overall costs. The optimum order is thought to be the one which has been determined most frequently within the conducted set of simulations. In order to increase the model's use value, the decision-making process based on its use has been shown in a flowchart. Furthermore, the paper proposes an adequate computer program for solving the model, written in LINGO's modelling language. [ABSTRACT FROM AUTHOR]