Quantitative Methods in Supply Chain Management pp 269-344 | Cite as

# Inventory Control

## Abstract

Inventory control has been the subject of intense study since the era of industrialization, due to its significant cost-savings potential. Major efforts in Operations Management were carried out since the 1950s in order to optimize the costs of an industrial organization by optimizing the inventories of raw materials, work-in-progress as well as finished products; for a detailed review of initiatives such as MRP and MRP II, or just-in-time (JIT) see Hopp and Spearman (2008). The mathematical analysis of inventory systems starts with Harris’s economic order quantity model, received a major boost in the 1950s and the 1960s, the time when computers and Operations Research methods started to become well-known and indispensable tools for scientists, engineers and managers alike, and continues to this day, in both fundamental as well as niche aspects of inventory theory and control. Throughout this chapter, it is assumed that stocked items are non-perishable and therefore have no life-time limitations.

## Keywords

Supply Chain Economic Order Quantity Bullwhip Effect Optimal Order Quantity Inventory Position## References

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