Winery Supply Chains (WSC) are more cash sensitive as a considerable portion of inventory is kept and financed throughout the WSC due to the long production process, distances from suppliers/markets and the importance of having the correct finished goods for orders. Hence, Inventory Optimization (IO) is one of the most critical areas in a WSC. This paper is framed on introducing a Genetic Algorithm (GA) incorporating a mathematical model that integrates selected external and internal characteristics of WSCs together with demand uncertainties specific to WSC, developed by the authors to optimize the most critical type of inventory, the safety stock level of WSC. This paper further compares three main types of inventory policies, the continuous review, the periodic review policy and a hybrid of both policies, which analyze their impact on selected Key Performance Indicators (KPI). The developed simulation models incorporating the comparison, integrates demand specific for wine products to a distributor in a Winery Supply Chain. This paper fulfils a larger knowledge gap in the arena of IO for WSC and presents the foundation for larger research projects in IO for WSC. Thus, the generic safety stock model would enable the WSCs achieve higher performance leading to competitive advantage.
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