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Stochastic Inventory Model includes the application of mathematical models in inventory system and management. Introduced in the 1958 by Stanford University Press as studies of Mathematical Theory of Inventory and Production, this subject has become very popular ever since. With mathematical applications on inventory methods and models, it has become easier for organizations in designing, procuring, transforming, moving, storing, selling and providing after-sales services for various products. Mathematical models help in predicting uncertain future so that an organization can prepare well in advance.
Some of the topics covered under Stochastic Inventory Model include
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