(Q,r) Based Inventory Model for Thailand’s HDD Industry: A Simulation Study

Abstract

A stochastic inventory policy under uncertain demand for hard disk drive makers and suppliers in
Thailand was developed. The policy was based on the (Q, r ) model and was proposed to balance the cost of
having high inventory level versus the cost of not be able to fulfill the customer demand. This ensured that
there will be sufficient goods for customers while at the same time the inventory cost is monitored.
Performance of the proposed model in terms of capability of controlling the inventory cost and its robustness
was evaluated through our experiment based on a Monte Carlo simulation. The results suggested a great
potential of using the proposed model in the hard disk drive industry.