Economic disposal quantity of leftovers kept in storage: a Monte Carlo simulation method

• Autor(a) principal: Assis, Rui
• Data de Publicação: 2019
• Outros Autores: Marques, Pedro Carmona, Santos, José Oliveira, Vidal, Raphaela
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10437/13107
• topic: GESTÃO; GESTÃO DE STOCKS; TOMADA DE DECISÃO; OTIMIZAÇÃO; PROCESSOS ESTOCÁSTICOS; MANAGEMENT; STOCK MANAGEMENT; DECISION MAKING; OPTIMIZATION; STOCHASTIC PROCESSES

This article describes how to reach an item’s threshold, or in other words, the limit time for it to be re 5 trieved from stock and sold for a different use, as well as the remaining foreseen period for this situation to occur. Once a minimum length, or weight, is reached, left quan tities are more difficult to sell, as demand often exceeds the remaining parts or leftovers. The number of unfulfilled 10 orders increases, as time goes by, until it becomes further cost effective to dispose the leftover and sell it for a lower price and alternative use. A Monte Carlo simulation model was built in order to consider the randomness of future transactions and quantifying consequences providing this 15 way a simple and effective decision-making. KEYWORDS: Decision-making ; Economical Optimization ; Monte-Carlo Simulation ; Stochastic Process