ABSTRACT
The efficient management of inventory requires managers to make decisions on two fundamental questions: (1) how large should an inventory replenishment order be, and (2) when should an inventory replenishment order be placed. These two decisions are integral in the support of an overall inventory management program that typically has the objective of providing a desired level of customer service at a minimal cost. Beginning in 1913 with Harris’s economic order quantity (EOQ)
8.1 Introduction .................................................................................................. 173 8.2 Parameter Estimation in Classical Inventory Models .................................. 175
8.2.1 Summary of Modeling Inventory Cost Inputs .................................. 175 8.2.2 Robust Properties of the EOQ Inventory Model .............................. 177
8.2.2.1 Misspecification of Optimal Order Quantity ..................... 177 8.2.2.2 Misspecification of Order Quantity Parameters ................ 178
8.2.3 Limitations of Robustness in the EOQ Model .................................. 179 8.3 The Inventory Management Literature ......................................................... 179
8.3.1 Overview of General Inventory Models ........................................... 179 8.3.2 Overview of Inventory Models with Special Characteristics ........... 180
8.4 Fuzzy Inventory Literature ........................................................................... 182 8.4.1 Economic Order Quantity (EOQ) Models ....................................... 182 8.4.2 Economic Production Quantity (EPQ) Models ................................ 183 8.4.3 Joint Economic Lot Sizing Models ................................................... 185 8.4.4 Single Period, Newsvendor Models .................................................. 185 8.4.5 Multiperiod Inventory Models .......................................................... 187 8.4.6 Multi-Item Inventory Models ........................................................... 187 8.4.7 Inventory Control Systems ............................................................... 187
8.5 Summary and Conclusions ........................................................................... 192 References .............................................................................................................. 192
Fuzzy Literature ............................................................................................ 192 Nonfuzzy Literature ...................................................................................... 196
model, numerous mathematical inventory models have been published in the inventory literature to assist managers in determining the size and timing of an inventory replenishment order in support of this objective.
