STOCKLOGS: A Classroom Exercise for Teaching the Logistical Relationship of Location and Inventory

Abstract

An important decision for logistics managers is to determine the number of locations at which to stock goods for subsequent sale and movement to consuming points. This decision requires an understanding of the relationships within the logistics system. To help students develop an appreciation for this decision and its underlying complexities an interactive simulation has been developed. The following paper describes the basic problem encountered by logistics managers, the simulation and how it is used in the classroom.