Operational Research Techniques in Stochastic Inventory Management
Antara Kundu
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Operational Research Techniques in Stochastic Inventory Management

Stochastic Inventory Management

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Common characteristics of inventory systems include uncertain demand and restrictions such as budgetary and storage space constraints. Several authors have examined budget constrained multi-item stochastic inventory systems controlled by continuous review policies without considering marginal review shortage costs. Existing models assume that purchasing costs are paid at the time an order is placed, which is not always the case since in some systems purchasing costs are paid when order arrive. In the latter case the maximum investment in inventory is random since the inventory level when an or...