Using Simulation Dynamics' Supply Chain Builder, a supply chain tool has been developed to study alternative inventory allocations in a network. The model represents the supply chain of a nationwide food production and distribution network. The company produces thousands of product lines and is studying the best strategies for allocating inventory to distribution centers to avoid cross-shipments of product. This paper describes the data needs and logic of this simulation tool along with its effectiveness in comparing strategies for locating SKU inventory in a supply chain.
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