Inventory Management (Master Program)
(Prof. Dr. Stefan Minner, Yihua Wang)
Monday and Wednesday 11:30-13:00 (1601)
COURSE DESCRIPTION
This course focuses on inventory management under uncertainty. Mathematical inventory control models and approaches are presented for multi-period dynamic inventory problems, multi-echelon problems, and multi-product coordinated replenishment problems. Further, different approaches to data-driven inventory management are presented.
Specifically, the course covers the topics:
- Performance metrics
- Lot-sizing: EOQ, EPQ, Wagner-Whitin
- Forecasting: Time series, regression, data analysis, probability distributions
- Newsvendor model
- Single-echelon inventory control: (R,S), (s,Q), (s,S) policies and parameter optimization
- Multi-echelon inventory control: Lot-sizing, safety stock optimization, METRIC
- Multi-product models: ELSP, warehouse scheduling, joint replenishment problems
- Data-driven inventory management
Recommendation: Students should have taken the MOS course.
LEARNING OBJECTIVES
After participation in this course, students can quantitatively analyze and model supply chain design, implement and optimize mathematical inventory models. Challenging real-world problems can be solved, and computer programs can be used to determine inventory control parameters.
Prerequisites
Knowledge of mathematical modelling, basic probability theory and statistics, and Excel is expected.
METHODS
The course consists of a sequence of lectures and exercise classes, and ends with a final, written exam.
IMPORTANT DATES
Lectures start on: April 17th, 2024
EVALUATION
Final, written exam: 100%
BACKGROUND LITERATURE
- Silver, E.A., Pyke, D.F., Thomas, D.J. (2017), Inventory and Production Management in Supply Chains, 4th edition, CRC Press.
- Vandeput, N. (2020), Inventory Optimization: Models and Simulations, Walter de Gruyter GmbH & Co KG.
- Muckstadt, J.A., Sapra, A., (2010), Principles of Inventory Management, Springer
- Axsäter, S. (2015), Inventory Control, 3rd edition, Springer.
- Zipkin, P. (2000), Foundations of Inventory Management, McGraw-Hill.