In this paper, an integrated simulation optimization model for the inventory system is developed. An effective algorithm is developed to evaluate and analyze the back-end stored simulation results. This paper proposes simulation tool SIMIN (Inventory Simulation) to simulate inventory models. SIMIN is a tool which simulates and compares the results of different inventory models. To overcome various practical restrictive assumptions, SIMIN provides values for a number of performance measurements. This tool is programmed in JAVA and is based on analytical approach to guide optimization strategy. Objective of this paper is to provide a user friendly simulation tool which gives optimized inventory model results. Simulation is carried out by providing the required values of input parameters and result is stored in the database for further comparison and study. Result is obtained in terms of the performance measurements of classical models of inventory system. Simulation results are stored in excel file and it also provides graphical results to compare the outcome. This simulation tool is interfaced with an optimization procedure based on classical models of inventory system. With the specified examples, the simulation results are obtained and analyzed rigorously. The result shows that input parameters, total system costs and capacity should be considered in the design of a practical system.
