Arena simulation model for multi echelon inventory system in supply chain management

Supply chain inventory management (SCIM) is an integrated approach to the planning and control of inventory throughout the whole network of cooperating organizations from source of supply to the end user. Research shows that Multi Echelon Inventory System can help companies save costs. In this paper, simulation model is being developed for multi echelon inventory system in supply chain using Arena 7.0. Model consists of three active members in it: One distribution center, three retailers and customer. Our model focuses on improving sales and reducing lost sales by introducing the interrelationship among retailers. The simulation results show that interrelationship with sharing inventory among retailers will help retailers increase their sales.