Optimization And Simulation Of Complex Inventory System Under The Condition Of Inflation

Classic inventory theories have changed quickly and many conclusions have beenpublished in the few years. However, time-value of money is variational the time of dayunder the condition of inflation. Thus,the study on optimization and simulation ofcomplex inventory system is specially and importantly significant under the condition ofinflation. How to computer EOQ(Economic Order Quantity) policies and optimize inventorysystem have been be a question under the condition of inflation and time-value of moneyin the practical run of inventory systems.In order to support the management anddecision-making of enterprises and in order to induce cost and advance profit and inorder to keep away hazard because of inflation and time-value of money and in order tomake scientific conclusions based on conclusions of this study,the study on optimizationand simulation of complex inventory system is meaning. This paper states the effect of inflation and time-value of money on complexinventory system and the sensitivity of system parameter. Building model is to find themagnitude connection between inflation and profit and to find optimal algorithm and tosupport EOQ policies. Three parts are studied in the paper.The first part,th effect of inflation on inventorysystem under the condition of random product life cycle. Secondly,the optimization ofdecayed inventory system under the condition of inflation and lead time and shortage.Thirdly,the optimization and simulation of inventory system is studied,the sensitivity ofsystem parameters on profit and EOQ is found,many important computational results areachieved.