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models

Probabilistic (or stochastic) inventory control models

1) An inventory control system where all the variables and parameters used are treated as random variables. It is assumed that the average demand for items is approximately constant over time and that it is possible to state the probability distribution of the demand, particularly during the lead time for replenishment. (Source: ILTSupply-Chain Inventory Management SIG)

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Deterministic inventory control models

1) An inventory control system where all the variables and parameters used are known, or can be calculated with certainty.

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