Inventory Control in MSMEs Using Monte Carlo Simulation

In this article, the optimal inventory levels for a beer retailer are determined by using the Economic Order Quantity (EOQ) model with the help of @Risk tools to generate a Monte Carlo simulation. In this sense, the product catalog was classified according to the ABC system for its analysis, the products with the highest rotation were selected, limiting them to the seven most sold beers; the estimated demand was determined through probabilistic models and the total inventory costs in order to establish the optimal level of orders, the safety inventory and the reorder points. For each product selected, a test was carried out with three inventory policies in order to choose the most efficient one according to its total costs and service level. This model has the particularity of being able to be applied in companies that identify difficulties in inventory management and thus identify areas for improvement.