Thesis Proposal Applying Simulation Model To Simulate The Furniture Company's Inventory System Using Arena Software A Case Study Of Minh & More Company In Vietnam

Abstract

Warehouse is an essential component of the supply chain, mostly related to the steps from the receipt of raw materials, the production in the system to the completion of the product. Warehouses should be designed and operated according to a system with special requirements, requiring operational facilities, personnel, and equipment. Warehouse is often an expensive factor in the supply chain and thus effective warehouse management is the decisive item in terms of both price and customer service. The most important goal of the warehouse is to facilitate the flow of goods throughout the supply chain to satisfy the end customer. There are several techniques to reduce inventory, like just-in-time, Efficient consumer response, etc. This thesis focuses on investigating and evaluating the problem in the warehouse of Minh & More furniture company to provide optimal solutions to overcome negative consequences. By simulating the inventory system model, this article will specifically analyze the inventory costs of the company's three best-selling furniture products. Moreover, the article will conduct the simulation method using Arena software in parallel and the method of calculating actual data with the help of Excel. These two methods are then compared with each other by inventory cost and service level to find the optimal plan. Besides, by analyzing the re-order point effect and re-order quantity effect, the output results are required to match the actual results to be able to evaluate the model accurately.