In most real-world inventory problems, lead time and demand vary in ways that make simulation a necessity because mathematical modeling is extremely difficult.

Question

Quizplus · Accepted Answer

Lead time and demand are often stochastic in nature and can vary in complex ways, making it difficult to derive analytical solutions. Simulation allows for the modeling of these uncertainties and their impact on inventory levels, making it a necessary tool in many inventory management problems.

In Most Real-World Inventory Problems, Lead Time and Demand Vary