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An integrated approach using discrete event simulation and design of experiments for working capital management in the fuel retail trade

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  • Ricardo Henrique Batista
  • Rafael de Carvalho Miranda
  • André Luiz Medeiros
  • João Victor Soares do Amaral
  • Aneirson Francisco da Silva

Abstract

This study introduces an innovative approach to Working Capital Management (WCM) in the fuel retail sector, using Discrete Event Simulation (DES) and Design of Experiments (DOE). Efficient WCM is essential for small businesses, particularly in fuel retailing with its tight margins and intense competition. Unlike static financial tools relying on historical data, DES interacts with indicators such as Working Capital Requirement (WCR) and Liquidity Ratios, providing stochastic and accurate information. The study examined three variables (Supplier Payment Deadline, Credit Card Receipt Deadline, and Customer Payment Profile) across 16 experimental scenarios. The Payment Term to Suppliers emerged as the key factor in reducing WCR. Despite lower liquidity potential, the company balanced short-term obligations, identifying optimal WCM scenarios. The study shifts WCM analysis from static data to forecasted, real-time data, supporting dynamic business decision-making. It concludes that DES is a valuable tool for effective WCM in fuel retail, encouraging further research.

Suggested Citation

  • Ricardo Henrique Batista & Rafael de Carvalho Miranda & André Luiz Medeiros & João Victor Soares do Amaral & Aneirson Francisco da Silva, 2025. "An integrated approach using discrete event simulation and design of experiments for working capital management in the fuel retail trade," Journal of Simulation, Taylor & Francis Journals, vol. 19(4), pages 427-440, July.
    • Handle: RePEc:taf:tjsmxx:v:19:y:2025:i:4:p:427-440
    DOI: 10.1080/17477778.2024.2418129
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