Introduction The fundamental problem of inventory management -When to place order for replenish the stock -How much to order? The complexity of the resulting model depends on the assumptions about the various parameters of the system The major distinction is between models for known demand and random demandIntroduction • The fundamental problem of inventory management : When to place order for replenish the stock ? How much to order? • The complexity of the resulting model depends on the assumptions about the various parameters of the system The major distinction is between models for known demand and random demand