Inventory Management Models in Supply Chains: A Literature Review


  • Valentina Gutiérrez Universidad de Antioquia
  • Carlos Julio Vidal Universidad del Valle


inventory management, demand randomness, lead time randomness, inventory policies, management models


In this paper, we review inventory management models for designing inventory policies for final products and raw materials in supply chains, considering random demand and lead times. (1) Random Demand Models, (2) Random Lead Times Models, (3) Inventory Policy Models, and (4) Integrated Inventory Management Model. For each section we present summary tables describing the main characteristcs of models found in the literature. Special emphasis is placed on the lack of methodologies for modeling random issues of the system. Research and development opportunities in the context of the Colombian industry are also identified.

= 3495 veces | PDF (ESPAÑOL (ESPAÑA))
= 1681 veces|


Download data is not yet available.

Author Biographies

Valentina Gutiérrez, Universidad de Antioquia

Departamento de Ingeniería Industrial

Carlos Julio Vidal, Universidad del Valle

Escuela de Ingeniería Industrial y Estadística


S. Axsäter. Inventory Control. Kluwer Academic Publishers. Boston. 2000. pp. 2-5.

C. J. Vidal. Introducción a la gestión de inventarios. Universidad del Valle, Facultad de Ingeniería, Escuela de Ingeniería Industrial y Estadística. Cali. 2006. pp.1-16.

S. C. Graves, A. H. G. Rinnooy Kan, P. H. Zipkin. “Handbooks in Operations Research and Management Science”. Logistics of Production and Inventory. Elsevier Science Publishers. North Holland. The Netherlands. Vol. 4. 1993. pp. 3-50.

X. Yajiong, H. Liang, W. R. Boulton, C. A. Snyder. “ERP Implementation failures in China: Case studies with implication for ERP vendors”. International Journal of Production Economics. Vol. 97. 2005. pp. 279-295.

W. M. Harvey. “And then there were none”. Operations Research. Vol. 50. 2002. pp. 217-226.

H. Girlich, A. Chikan. “The Origins of Dynamic Inventory Modeling under Uncertainty: The men, their work and the connection with the Stanford Studies”. International Journal of Production Economics . Vol. 71. 2001. pp. 351-363.

E. A. Silver, D. F. Pyke, R. Peterson. Inventory Management and Production Planning and Scheduling. ed. 3. John Wiley & Sons, New York. 1998. pp. 74-130.

R. Snyder. “Forecasting sales of slow and fast moving inventories”. European Journal of Operational Research. Vol. 140. 2002. pp. 684-699.

G. Gallego, L. B. Toktay. “All-or-Nothing Ordering Under a Capacity Constrain and Forecast of Stationary Demand”. Research Paper. 2003. Consultada agosto 14 de 2007.

C. J. Vidal, J. C. Londoño. F. Contreras. “Aplicación de los Modelos de Inventarios en una Cadena de Abastecimiento de Productos de Consumo Masivo con una Bodega y N Puntos de Venta”. Ingeniería y Competitividad. Vol. 6. 2004. pp.35-52.

J. R. Bulter. Supply Chain Design for New Products. Doctoral Thesis. School of Industrial and Systems Engineering, Georgia Institute of Technology. USA. 2003. pp. 34-70.

B. Dimitris, A. Thiele. “A Robust Optimization Approach to Supply Chain Management”. Research Paper. Massachusetts Institute of Technology. Cambridge, MA., 2003. consultado en agosto de 2007.

A. H. Packer. “Simulation and adaptative forecasting as applied to inventory control” Operations Research. Vol. 15. 1967. pp. 660-679.

D. R. Snyder, A. B. Koehler, R. J. Hyndman, J. K. Ord. “Exponential smoothing models: Means and variances for lead-time demand”. European Journal of Operational Research. Vol. 158. 2004. pp. 444-455.

A. Vazsonyi. “The Use of Mathematics in Production and Inventory Control II” Management Science. Vol. 1. 1955. pp. 12-28.

D. C. Xin. “Coordinating Inventory Control and Pricing Strategies with Randon Demand and Fixed Ordering Cost”. Manufacturing and Service Operations Management. Vol. 5. 2003. pp. 59-62.

G. Gallego, A. Muriel, T. Yildiz. “Optimal Policies with Convertible Lead Times”. European Journal of Operational Research. Vol. 176. 2007. pp. 892-910.

K. C. Gudum, T. G. de Kok. “A safety stock adjustment procedure to enable target service levels in simulation of generic inventory systems”. Research Paper. Department of Management Science and Statistics, Copenhagen Business School. Denmark. 2002. Consultada en agosto 15 de 2007.

J. Meixell, S. D. Wu. “Scenario Analysis in a Technology Market Using Leading Indicators”. IIE Transactions: Semicondor manufacturing. Vol. 14. 2001. pp. 66-75.

P. Hurter, F. Arthur, C. Kaminsky. “An application of regenerative stochastic processes to a problem in inventory control”. Operations Research. Vol. 15. 1967. pp. 467-472.

T. J. Treharne, C. R. Sox. “Adaptive Inventory Control for Nonstationary Demand and Partial Information”. Management Science. Vol. 48. 2002. pp. 607-624.

J. Riezbos. “Inventory Order Crossovers”. International Journal of Production Economics. Vol. 102. 2006. pp. 666-675.

C. K. Gudum. “A New Compound Lead Time Demand Distribution Approach and a Comparison Study”. Research Paper. Copenhagen Business School. Denmark. 2003. Consultada agosto 15 de 2007.

S. R. Kaplan. “A Dynamic Inventory Model with Stochastic Lead Times”. Management Science. Vol. 16. 1970. pp. 491-507.

F. A. Russell Richards. “Stochastic Model of a Repairable-Item Inventory System with Attrition and Random Lead Times”. Operations Research. Vol. 24. 1976. pp. 118-130.

P. Sphicas Georghios. “On the Solution of an Inventory Model with Variable Lead Times”. Operations Research. Vol. 30. 1982. pp. 404-410.

C. Nevison, M. Burstein. “The Dynamic Lot-Size Model with Stochastic Lead Times”. Management Science. Vol. 30. 1984. pp. 100-109.

H. Wagner. T. M. Whitin. “Dynamic version of the economic lot size model”. Management Science, Vol. 50. 2004. pp. 1770-1774.

R. Ehrhardt. “(s, S) Policies for a Dynamic Inventory Model with Stochastic Lead Times”. Operations Research. Vol. 32. 1984. pp. 121-132.

C. J. Vidal. M. Goetschalckx. “Modeling the Impact of Uncertainties on Global Logistics Systems”. Journal of Business Logistics. Vol. 21. 2000. pp. 95-120.

J. Song. D. D. Yao. “Performance Analysis and Optimization of Assemble-To-Order Systems with Random Lead Times”. Operations Research. Vol. 50, No.5 (sept-oct. 2002); pp. 889-903.

C. K. Gudum. Managing variability in a supply chain: An inventory control perspective. Doctoral Thesis. Copenhagen Business School. Denmark. 2002. pp. 36-54.

J. D. Kumar, S. Kar, M. Maiti. “An interactive method for inventory control with fuzzy lead-time and dynamic demand”. European Journal of Operational Research. Vol. 167. 2005. pp. 381- 397.

R. Bhatnagar, P. Chandra, S. K. Goyal. “Models for multi-plant coordination”. European Journal of Operations Research. Vol. 67. 1993. pp. 141-160.

R. Lederman. Optimization of Stochastic Inventory Control with Correlated Demands. Undergraduate Thesis. Department of Computer Science. Brown University. USA 2003. pp. 3-19.

A. M. Sarmiento, R. Nagi. “A review of integrated analysis of production-distribution systems”. IIE Transactions. Vol. 31. 1999. pp. 1061-1074.

Y. Crama, Y. Pochet, Y. Wera. “A discussion of production planning approaches in the process industry”. Research Paper. 2001. Consultada en agosto 15 de 2007.

M. N. Rosa. Make-to-Stock vs. Make-to-Order in Glass Manufacturing. Master Thesis. Universidad Técnica de Lisboa. Instituto Superior Técnico. Lisboa, Portugal, 2001. pp. 29-52.

G. Pundoor. Supply Chain Simulation Models for Evaluating the Impact of Rescheduling Frequencies. Master Thesis. Institute for Systems Research. University of Maryland, 2002. pp. 23-41.

R. Teunter. E. van der Laan, D. Vlachos. “Inventory strategies for systems with fast remanufacturing”. Journal of the Operational Research Society. Vol. 55. 2004. pp.475-484.

C. A. Soman. D. Pieter van Donk, G. Gaalman. Combined make-to-order make-to-stock in a food production system. International Journal of Production Economics. Vol. 90. 2004. pp. 223-235.

H. S. Abhyankar. S. Graves. “Creating an Inventory Hedge for Markov Modulated Poisson Demand: An Application and Model”. Manufacturing and Service Operations Management. Vol. 3. 2001. pp. 306-320.

S. C. Graves, C. Gutiérrez, M. J. Pulwer, H. S. Sidhu. G. L. Weihs. “Optimizing Monsanto’s Supply Chain under Uncertain Demand”. Research Paper. MIT. Cambridge, MA. 1998. Consultada en agosto 15 de 2007.

S. Shervais. Adaptive critic design of control policies for multi-echelon inventory systems. Doctoral Thesis. Portland State University. USA, 2000. pp. 59-96.

E. Katok, A. Lathrop, W. Tarantino, S. H. Xu. “Jeppesen Uses a Dynamic Programming-Based DSS to Manage Inventory”. Interfaces. Vol. 31. 2001. pp. 54-65.

M. Ketzember, R. Metters, J. Semple. “A Heuristic for Multi-Item Production with Seasonal Demand”. IIE Transactions. Vol. 38. 2006. pp.201-211.

J. A. Van Mieghem, N. Rudi. “Newsvendor Networks: Inventory Management and Capacity Investment with Discretionary Activities”. Manufacturing and Service Operations Management. Vol. 4. 2002. pp. 313-335.

S. Smits. Tactical design of production distribution networks: safety stock, shipment, and production planning. Doctoral Thesis. Technische Universiteit Eindhoven. 2003. pp.109-152.

Y. Song, H. Chuin Lau. “A periodic review inventory model with application to continuousreview obsolescence problem”. European Journal of Operational Research. Vol. 159. 2004. pp. 110-120.

L. Liu, L. Xiaoming, D. D. Yao. “Analysis and Optimization of a Multistage Inventory-Queue System”. Management Science. Vol. 50. 2004. pp. 365- 380.

R. Kapuscinski, R. Q. Zhang, P. Carbonneau, R. Moore, Bill Reeves. «Inventory Decisions in Dell´s Supply Chain”. Interfaces. Vol. 34. 2004. pp. 191-205.



How to Cite

Gutiérrez, V., & Vidal, C. J. (2014). Inventory Management Models in Supply Chains: A Literature Review. Revista Facultad De Ingeniería Universidad De Antioquia, (43), 134–149. Retrieved from