A SYSTEM SIMULATION STUDY ON

THE THREE FAST MOVING PRODUCTS (MARLBORO, C2, VIVA) OF THE

COLLEGE VARIETY SHOPPE USING

THE MONTE CARLO SIMULATION IN INVENTORY MANAGEMENT

EXECUTIVE SUMMARY

This study shows how the selected three fast moving products (Marlboro cigarettes, C2, Viva mineral water) move from the current Inventory Management technique of the College Variety Shoppe from its distributors to its warehouse storage to the end user or customer. An excel program and a simulation model was made to observed its current performance. After the observation, the group performs an experimentation that will improve the current technique of the College Variety Shoppe. After simulating the experimentation, the group then give conclusions and recommendations on how to improve the College Variety Shoppe’s current Inventory Management.

TABLE OF CONTENTS

Title Page ........................................................ 1

Executive Summary ........................................................ 2

Table of Contents ........................................................ 3

Introduction ........................................................ 4

Methodology ........................................................ 6

Model Development ........................................................ 7

Model Validation ........................................................ 11

Experimentation, Results ........................................................ 15

And Analysis

Conclusion and

Recommendations ........................................................ 16

References ........................................................ 17

List of Tables

Statfit Table of Descriptive Statistics on each product ................. 7

Table of EOQ and ROP of each product