Inventory Optimization: Models and Simulations

by Nicolas Vandeput

In this book . . . Nicolas Vandeput hacks his way through the maze of quantitative supply chain optimizations. This book illustrates how the quantitative optimization of 21st century supply chains should be crafted and executed. . . . Vandeput is at the forefront of a new and better way of doing supply chains, and thanks to a richly illustrated book, where every single situation gets its own illustrating code snippet, so could you.

--Joannes Vermorel, CEO, Lokad

Inventory Optimization argues that mathematical inventory models can only take us so far with supply chain management. In order to optimize inventory policies, we have to use probabilistic simulations. The book explains how to implement these models and simulations step-by-step, starting from simple deterministic ones to complex multi-echelon optimization.

The first two parts of the book discuss classical mathematical models, their limitations and assumptions, and a quick but effective introduction to Python is provided. Part 3 contains more advanced models that will allow you to optimize your profits, estimate your lost sales and use advanced demand distributions. It also provides an explanation of how you can optimize a multi-echelon supply chain based on a simple—yet powerful—framework. Part 4 discusses inventory optimization thanks to simulations under custom discrete demand probability functions.

Inventory managers, demand planners and academics interested in gaining cost-effective solutions will benefit from the "do-it-yourself" examples and Python programs included in each chapter.

Events around the book

Link to a De Gruyter Online Event in which the author Nicolas Vandeput together with Stefan de Kok, supply chain innovator and CEO of Wahupa; Koen Cobbaert, Director in the S&O Industry practice of PwC Belgium; Bram Desmet, professor of operations & supply chain at the Vlerick Business School in Ghent; and Karl-Eric Devaux, Planning Consultant, Hatmill, discuss about models for inventory optimization.The event will be moderated by Eric Wilson, Director of Thought Leadership for Institute of Business Forecasting (IBF):

Genres: Business

474 pages, Kindle Edition

Published August 24, 2020

Reviews

[Duc Viet · Rating 5 out of 5]

Well written book. Good flow throughout with intuitions on why each model is built sequentially. Give you a strong foundation on the fundamental building blocks of inventory control. It also introduced a very practical, industry-oriented approach to inventory management, using simulation optimisation. It shows how models and simulation could be built using Python - making it very applicable to the age of technology and programming.

[Steffen Jensen · Rating 4 out of 5]

Well written book on the major building blocks of inventory optimization. Lots of DIY sections for python, however still very interesting and useful for people (as me) who do not program in python.

[Ferhat Culfaz · Rating 5 out of 5]

Great book. A niche in the space of applied inventory optimisation using python or excel. Highly recommend.

[Josua Naiborhu · Rating 5 out of 5]

good read for understanding inventory terms along with mathematical equations laid out in this book for better comprehension.