Inventory management with statistical process control: Simulation and evaluation

Inventory costs are likely to gain more significance. For this reason, companies are looking for new approaches to inventory management. One approach is to develop the logistics competency of "agility" to reduce the necessity of forecasting as much as possible. One the other side, new inventory control methods and new computerized tools can be very helpful to optimize stock levels and to minimize backorder situations. This study introduces an alternative instrument new to inventory management based on "Statistical Process Control" and presents some of the empirical results of inventory simulations.