Inventory Control: Basics and Models

This lecture covers the fundamentals of inventory control, emphasizing the significant costs of not meeting consumer demand. It delves into inventory basics, including types and components, and explores various inventory management models such as EOQ and Newsvendor. The lecture also discusses the impact of demand uncertainty on inventory decisions, the characteristics of inventory systems, and the classification of models based on review time. Practical examples and cost calculations for setup, holding, and shortage are provided, along with the analysis of total cost functions. The lecture concludes with insights into continuous review systems like the (Q,R) policy and periodic review systems like the (s,S) policy, highlighting the trade-offs and decision-making processes involved in effective inventory management.