System Dynamics Modeling for Safety Stock Optimization Under Lead Time Uncertainty in Fertilizer Distribution: A Case Study in South Sulawesi

Authors

  • Fahri Anwar Universitas Negari Makassar
  • Nurlaela Universitas Negeri Makassar
  • Andi Muadz Palerangi Universitas Negeri Makassar
  • Achmad Romadin Universitas Negeri Makassar

DOI:

https://doi.org/10.59890/ijgsr.v4i5.214

Keywords:

System Dynamics, Safety Stock; Reorder Point, Lead Time Uncertainty, Fertilizer Distribution

Abstract

This study develops a System Dynamics model to evaluate safety stock and reorder point policies under lead time uncertainty in fertilizer distribution in Sulawesi, Indonesia. The model integrates statistical inventory control with dynamic simulation using Vensim to capture the effects of vessel delays, port congestion, and extreme weather disruptions. Three service-level scenarios were tested using different Z-factors: 2.33 (99%), 1.645 (95%), and 1.28 (90%). Results show that safety stock increases significantly across scenarios (approximately +28% and +42%), while reorder point values remain relatively stable (below 3% variation), indicating demand dominance. Holding cost increases modestly, ranging from 0.98% to 2.93% across scenarios. The balanced policy provides the most feasible trade-off between service reliability and inventory cost

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Published

2026-06-04

How to Cite

Anwar, F., Nurlaela, Palerangi, A. M., & Romadin, A. (2026). System Dynamics Modeling for Safety Stock Optimization Under Lead Time Uncertainty in Fertilizer Distribution: A Case Study in South Sulawesi. International Journal of Global Sustainable Research, 4(5), 487–500. https://doi.org/10.59890/ijgsr.v4i5.214

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Section

Articles