Abstract
This entry is a brief survey of classical inventory models and their extensions in several directions such as world-driven demands, presence of forecast updates, multi-delivery modes and advanced demand information, incomplete inventory information, and decentralized inventory control in the context of supply chain management. Important references are provided. We conclude with suggestions for future research.
Similar content being viewed by others
References
Arrow KJ, Karlin S, Scarf H (1958) Studies in the mathematical theory of inventory and production. Stanford University Press, Stanford
Axsäter S (2006) Inventory control. Springer, New York
Bensoussan A (2011) Dynamic programming and inventory control. IOS Press, Washington, DC
Bensoussan A, Çakanyildirim M, Sethi SP, Wang M, Zhang H (2011) Average cost optimality in inventory models with dynamic information delays. IEEE Transactions on Automatic Control 56(12): 2869–2882.
Bensoussan A, Sethi SP, Thiam A, Turi J (2020) Inventory control driven by demand data: Optimality and computation of base stocks. Working paper, University of Texas at Dallas. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3730630
Bensoussan A, Cakanyildirim M, Feng Q, Sethi SP (2009) Optimal ordering policies for stochastic inventory problems with observed information delays. Prod Oper Manag 18(5):546–559
Bensoussan A, Cakanyildirim M, Sethi SP (2010) Filtering for discrete-time Markov processes and applications to inventory control with incomplete information. In: Crisan D, Rozovsky B (eds) Handbook on nonlinear filtering. Oxford University Press, Oxford, UK, pp 500–525
Beyer D, Cheng F, Sethi SP, Taksar MI (2010) Markovian demand inventory models. International series in operations research and management science. Springer, New York
Beyer D, Sethi SP (1998) A proof of the EOQ formula using quasi-variational inequalities. Int J Syst Sci 29(11):1295–1299
Cachon GP (2003) Supply chain coordination with contracts. In: de Kok AG, Graves S (eds) Supply chain management-handbook in OR/MS, chapter 6. North-Holland, Amsterdam, pp 229–340
Chand S, Hsu VN, Sethi SP (2002) Forecast, solution and rolling horizons in operations management problems: a classified bibliography. Manuf Serv Oper Manag 4(1):25–43
Clark AJ, Scarf H (1960) Optimal policies for a multi-echelon inventory problem. Manag Sci 6(4):475–490
Erlenkotter D (1990) Ford Whitman Harris and the economic order quantity model. Oper Res 38(6):937–946
Harris FW (1913) How many parts to make at once. Fact Mag Manag 10(2):135–136, 152. Reprinted (1990) Oper Res 38(6):947–950
Ozer O (2011) Inventory management: information, coordination, and rationality. In: Kempf KG, Keskinocak P, Uzsoy R (eds) Planning production and inventories in the extended enterprise. Springer, New York
Porteus EL (2002) Stochastic inventory theory. Stanford University Press, Stanford, CA
Presman E, Sethi SP (2006) Inventory models with continuous and Poisson demands and discounted and average costs. Prod Oper Manag 15(2):279–293
Scarf H (1960) The optimality of (s, S) policies in dynamic inventory problems. In: Arrow KJ, Karlin S, Suppes P (eds) Mathematical methods in the social sciences. Stanford University Press, Stanford, pp 196–202
Sethi SP (2010) i3: incomplete information inventory models. Decis Line Oct:16–19
Sethi SP, Yan H, Zhang H (2005) Inventory and supply chain management with forecast updates. Springer, New York
Wagner HM, Whitin TM (1958) Dynamic version of the economic lot size model. Manag Sci 5:89–96
Zipkin P (2000) Foundations of inventory management. McGraw Hill, New York
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Section Editor information
Rights and permissions
Copyright information
© 2021 Springer-Verlag London Ltd., part of Springer Nature
About this entry
Cite this entry
Sethi, S.P. (2021). Inventory Theory. In: Baillieul, J., Samad, T. (eds) Encyclopedia of Systems and Control. Springer, London. https://doi.org/10.1007/978-1-4471-5102-9_44-2
Download citation
DOI: https://doi.org/10.1007/978-1-4471-5102-9_44-2
Published:
Publisher Name: Springer, London
Print ISBN: 978-1-4471-5102-9
Online ISBN: 978-1-4471-5102-9
eBook Packages: Springer Reference EngineeringReference Module Computer Science and Engineering
Publish with us
Chapter history
-
Latest
Inventory Theory- Published:
- 08 December 2020
DOI: https://doi.org/10.1007/978-1-4471-5102-9_44-2
-
Original
Inventory Theory- Published:
- 05 April 2014
DOI: https://doi.org/10.1007/978-1-4471-5102-9_44-1