In this paper, we have studied the adjustment algorithm of the inventory management model of the military from the viewpoint of system dynamics. In particular, we focused on the feedback relationship, which can be called the decision-making mechanism. One of the factors directly affecting the military inventory management decision is demand forecast accuracy. According to the relevant directive, the demand forecast accuracy level is set at 75% level. Therefore, the item management mechanism of the item manager reflects the control action for the prediction demand(pre-order quantity) and actual demand. This accuracy-based inventory management approach can face high inventory depletion risks. This can be complemented by an inventory management approach that takes into account the nature and importance of the managed objects to ensure the effectiveness of operational support. This study compares and analyzes the demand feedback accuracy improvement feedback structure and inventory importance feedback reflecting structure. Both models were simulated in the context of partial information. This is limited to cases where there is not enough data to accumulate data and the demand for observations is less than 30 on the assumption that demand dispersion is difficult to determine. This is a setting that is closer to the situation of military inventory management for the newly introduced specific equipment. Under partial information, the decision maker is a range approach. We also assumed various demands. They were simulated for three levels of demand: a flat level demand, a demand reflecting trend, and a demand reflecting seasonality. The simulation results show that importance-based feedback structure is better suited for managing military repair parts inventory than accuracy-based approach.


Inventory management, Systemdynamics, Order quantity determination, Demand forecast accuracy, Inventory importance