Stochastic Inventory Models

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

We discuss inventory systems in an independent demand setting, where demand over time is modeled as a stationary stochastic process. We begin with some basic notions and definitions on inventory management, followed by a discussion of well-known (and applied) control systems. Under periodic review and a linear cost structure, it is known that the optimal control policy has a critical level structure, hence we analyze such critical level policies in detail. After that, in an advanced section, we turn to multi-echelon or multi-stage systems. We present a complete analysis of the decomposition result proven initially by Clark and Scarf, and its analogue in distribution systems, i.e., systems with an arborescent instead of a linear structure (state-of-the-art). Computational aspects are briefly discussed after which we close with some guidelines for further reading.
LanguageEnglish
Title of host publicationOperations, Logistics and Supply Chain Management
EditorsHenk Zijm, Matthias Klumpp, Alberto Regattieri, Sunderesh Heragu
Place of PublicationCham
PublisherSpringer
Chapter20
Pages441-467
ISBN (Electronic)978-3-319-92447-2
ISBN (Print)978-3-319-92446-5
DOIs
Publication statusPublished - 2019

Publication series

NameLecture notes in logistics

Fingerprint

Inventory Model
Stochastic Model
Multi-echelon
Periodic Review
Inventory Management
Inventory Systems
Distribution System
Control Policy
Stationary Process
Optimal Policy
Stochastic Processes
Optimal Control
Control System
Analogue
Decompose
Costs
Demand

Cite this

Zijm, H. (2019). Stochastic Inventory Models. In H. Zijm, M. Klumpp, A. Regattieri, & S. Heragu (Eds.), Operations, Logistics and Supply Chain Management (pp. 441-467). (Lecture notes in logistics). Cham: Springer. https://doi.org/10.1007/978-3-319-92447-2_20
Zijm, Henk. / Stochastic Inventory Models. Operations, Logistics and Supply Chain Management. editor / Henk Zijm ; Matthias Klumpp ; Alberto Regattieri ; Sunderesh Heragu. Cham : Springer, 2019. pp. 441-467 (Lecture notes in logistics).
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Zijm, H 2019, Stochastic Inventory Models. in H Zijm, M Klumpp, A Regattieri & S Heragu (eds), Operations, Logistics and Supply Chain Management. Lecture notes in logistics, Springer, Cham, pp. 441-467. https://doi.org/10.1007/978-3-319-92447-2_20

Stochastic Inventory Models. / Zijm, Henk.

Operations, Logistics and Supply Chain Management. ed. / Henk Zijm; Matthias Klumpp; Alberto Regattieri; Sunderesh Heragu. Cham : Springer, 2019. p. 441-467 (Lecture notes in logistics).

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

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Zijm H. Stochastic Inventory Models. In Zijm H, Klumpp M, Regattieri A, Heragu S, editors, Operations, Logistics and Supply Chain Management. Cham: Springer. 2019. p. 441-467. (Lecture notes in logistics). https://doi.org/10.1007/978-3-319-92447-2_20