ABSTRACT
Many industries with multi-echelon supply chains suffer inventory planning and cost increasing. To overcome the problem, this study investigates cost optimization in a multi-echelon supply chain, and a simulation is applied to find results. To achieve a minimum overall cost, this study proposes a model based on multilevel inventory system that focuses on improving amount of lost sale and costs. Arena software has been applied to observe the performance of different parameters and decision variables. Finally, optimization is performed to minimize costs and results of the model simulation are compared with the optimal model.
