Name: AI Inventory Management Lab
Author: MySimulator

Reorder policy

Reorder-point sensitivity: 50%

This case study models a single SKU across 3 warehouses over 90 days, with random daily demand. Higher sensitivity triggers a reorder earlier (higher reorder point), reducing stockout risk but increasing carrying cost from more inventory held on average.

90-day outcome

Stockout days—

Average inventory held—

Net cost (carrying + stockout)—

Inventory level (solid) vs. reorder point (dashed)