Probabilistic Inventory Models

Abstract

In this chapter, we consider inventory models in which demand over a given time period is uncertain, or random; single-period inventory models, where a prob- lem is ended once a single ordering decision has been made; single-period bidding models; versions of the EOQ model for uncertain demand that incorporate the important concepts of safety stock and service level; the periodic review (R, S) model; the ABC inventory classifica- tion system; and exchange curves.