Study on inventory control of coal enterprise based on system dynamic simulation

The inventory cost reduced is very important for coal enterprises to improve their effectiveness. However, some companies have to depend on demand plan made by many subordinate units just for demand forecasting difficulty, so “bullwhip effect” cannot be afforded, it is obvious that the key of inventory control is to improve the precision of predicting. Material demand generally has no law to follow, as to the method of demand forecasting, this paper provided the system dynamic simulation based on Monte Carlo simulation of demand data. The empirical study showed that the inventory cost reduced obviously, it also means that management cost reduced, because the material demand plan just only depends on its history data, and a large number of human resources used in demand forecasting have been saved.