Evaluation of dynamic buffer management for adjusting stock level: a simulation-based approach

Abstract

This research aims to evaluate how effective the Dynamic Buffer Management (DBM) method is for dynamically adjusting stock levels in order to both preserve the availability of finished goods in distribution environments and avoid overstocking. To this end, experiments based on computer simulations were developed as a way to evaluate DBM submitted to different consumption rates of finished goods, according to performance indicators that express both the level of service to customers and the stock held in the system. The results show the robustness of DBM, showing good performance - even if not the best - in any scenario and for all indicators. However, it can recommend adjustments to inventory levels even when the demand and replenishment time have not changed, leading to unnecessary and damaging optimizations within the system noise.