Inventory Management

In this chapter, we will look at several inventory ordering policies and inventory monitoring or review policies. For inventory ordering policies, we will determine when to order and how much to order for a single period or multiple periods problem, deterministic or stochastic demand, while incurring the minimum cost. Four policies will be covered including the economic order quantity (EOQ) model, Wagner-Whitin Procedure (WWP), newsvendor or newsboy model and the Order-up-to-Q* model.