The inventory level at any given time by the initial level of inventory replenishment plus and minus consumption over time from initial time up to that.
Inventory items can be delivered to the store by certain parties and designed to meet the continuing, but subjected to random fluctuations in customer demand.
Inventory management in general, is by influencing the relationship between the two main factors-completion and flow rate. The aim of management - the optimization of some criterion, depending on the cost of storage inventory, cost of supplies, the costs associated with the completion, penalties, etc.
In such a general setting similar problems may have the most diverse practical applications. For example, a stock can understand the company's products, which are produced continuously (replenishment) and shipped to consumers definite discrete batches (expense). The demand for the product is assumed a prescribed (deterministic demand) or subject to random fluctuations (stochastic problem). Inventory management is to determine the size of the required output to meet a given demand. The purpose - to minimize the total cost of storage and recharge. Stocks can be understood by stocks of raw materials or other materials provided with discrete batches (replenishment) and must provide continuous consumption in the production process (flow). Optimality criterion can serve as the total cost of storage resources, freezing current assets and supplies inventories.