A simplified approach: base stock policy implementation in general toy supply chains

The toy retail industry faces significant challenges due to high demand uncertainty and short product life cycles. Traditional inventory management methods often lead to stockouts, resulting in lost sales, or overstocking, which increases holding costs and potential obsolescence. Small to mid-sized enterprises (SMEs) in this sector frequently lack access to advanced inventory management systems.Despite extensive academic research on based-stock policies, there’s a notable gap in practical, accessible tools, specifically Excel-based simulations, that can serve as decision-support for toy retailers. Many analytical models are complex, and advanced simulation studies often require specialized software and expertise, limiting their adoption by managers.This project aims to bridge this gap by developing an accessible, simulation-based tool in Excel and as a web application. This primary goal is to help toy retailers optimize their inventory policy by minimizing total inventory costs, including ordering, and shortage costs. The project also seeks to obtain optimal cycle service level (CSL) through effective reorder point decisions and provide a low-cost decision support tool tailored for small to mid-sized retailers.