Inventory Management - 4GUL0705

Goal(s)

• Students must learn specific concepts and vocabulary so they can clearly express an inventory management problem.
• Understand inventory management problems with stochastic demand and/or lead-times and how to model such problems.
• Discover various inventory policies used in industry and how to evaluate and optimise such policies.
• Use written supports and documents (books, articles etc...)
• Put theory learnt into practice.
• Learn how to integrate inventory management in production planning.

Content(s)

The course is divided into two parts.

• The first part (two thirds of the course) is a theoretical course on inventory management and forecasting methods.

Here are the main topics of the course:
-Wilson model - Economic Order Quantity (constant demand)
-Newsboy model (random demand)
-Changing demand in time and/or random demand
-Introduction to several inventory control policies
-Non-stationary models
-Introduction to stochastic dynamic programming
-Extensions to multi-echelon, multi-product, multi-class problems
-Forecasting methods: time series, stationary and non-stationary demand
-Beer game
-3 classes are dedicated to students presenting articles. The subjects are linked to inventory management and forecasting demand.

• The second part of the course (the remaining one third of the course) is an industrial case study on production planning process (with inventory constraints).

Probability, Mathematics (Analysis), Introduction to Operations Management