Inventory Management: Information, Coordination, and Rationality

Part of the International Series in Operations Research & Management Science book series (ISOR, volume 151)


1Throughout the chapter, we use the terms inventory/production,​ control,​ replenishment/production, and order/produce interchangeably.

Inventory control problems have attracted researchers for many years1. Fundamentally, the problem is one of matching supply and demand by efficiently coordinating the production and the distribution of goods. Recent developments in information technology have equipped managers with the means to obtain better and timely information regarding, for example, demand, lead times, available assets, and capacity. Technology has also enabled customers to obtain vast amounts of information about a product, such as its physical attributes and availability. In today’s increasingly competitive marketplace, consumers are constantly pressuring suppliers to simultaneously reduce costs and lead times and increase the quality of their products. Good inventory management is no longer a competitive advantage. It is an essential capability to survive in a global market.


Supply Chain Lead Time Penalty Cost Forecast Information Replenishment Policy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



The authors research has been partially supported by National Science Foundation Grant No. 0556322. This chapter was written in 2006 when the author was a faculty member at the department of Management Science and Engineering at Stanford University.


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© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.Columbia UniversityNew YorkUSA

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