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The '''inventory control problem''' is a type of problem encountered within the field of [[optimal control]].
One issue is infrequent large orders vs. frequent small orders. Calculating shipping costs, volume discounts, storage costs, and capital costs, this can be figured with mathematical precision. Basically, how much money do you wish to have tied up in inventory?
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And a third issue comes from the whole philosophy of [[Just In Time (business)|Just In Time]], which argues that the costs of carrying inventory have typically been under-estimated, both the direct, obvious costs of storage space and insurance, but also the harder-to-measure costs of increased variables and complexity, and thus decreased flexibility, for the business enterprise.
The mathematical approach exists in two variations, and is typically formulated as follows:
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:<math> \sum_{k=0}^{\infty} c_k </math>.
And this is of course what is recommended, that an enterprise use both the judgment and experience of the business person and the most relevant equations and data.
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