Several Methods of Inventory Control

Abstract

This paper would firstly introduce the Single-Period Inventory Model, a basic method of inventory control. By analyzing the Newsvendor Problem which is a simplified situation of storing inventories, this paper would discover a method using normal distribution analysis to solve the problem. Then, the paper would promote the adoption of this method into realistic inventory problems and discuss its utility. Secondly, the topic is expanded to Multi-Period Inventory System. This system focus on a more sophisticated inventory situation, and it could be basically categorized into two models: fixed-order quantity model, and fixed time period model. The paper would discuss the methods of ordering determination of the two models respectively.