Abstract: Since supply chains highly impact the financial
performance of companies, it is important to optimize and analyze
their Key Performance Indicators (KPI). The synergistic combination
of Particle Swarm Optimization (PSO) and Monte Carlo simulation is
applied to determine the optimal reorder point of warehouses in
supply chains. The goal of the optimization is the minimization of the
objective function calculated as the linear combination of holding and
order costs. The required values of service levels of the warehouses
represent non-linear constraints in the PSO. The results illustrate that
the developed stochastic simulator and optimization tool is flexible
enough to handle complex situations.