Single-Echelon Inventory Models

Abstract

This chapter consists of four parts. In the first part, different systems and motives of inventory control are presented. Physical stocks in an inventory system are categorized and the sources of uncertainty are outlined. In the second part, a single-echelon, single-product inventory system is described by its main influencing factors. In parallel, approaches for modeling different system characteristics are presented. Quantitative safety stock planning procedures that are required for the different models are summarized in the third part. Finally, a different approach in stochastic inventory theory that utilizes the feedback concept instead of applying feedforward control of performance measures is mentioned.