Simulation and Optimization Research on Good-sized Auto Fitting Production-Inventory System

Good-sized auto fittings production-Inventory system has following drawbacks: overfilled warehouse, low efficiency of supply chain management and high logistics cost such as holding cost, ordering cost and so on. To solve these problems, this paper proposes a new simulation model and a new optimization model. Then the optimization model calculates the value of adaptive function by running the simulation model, outputting of which is controlled by these decision-making variables: products´ safety stocks, material ordering batch and controlling strategy of the system´s productivity. Finally, a case is designed. Running the simulation model and optimization model for three days, we get optimal solution of this case. Comparison between enterprise data and result of the case validates the simulation and optimization model. The model proposed in this paper can help third party logistics for auto business to lower logistics cost.