Multi-product (item) stock control in the context of uncertainty and nonstationarity. Part I: Deterministic model

The author proposes a multi-stage procedure as a basis for a practical solution of the multi-item inventory control problem in the context of nonstationarity and lacking trustable information on statistical parameters of the demand. The main point of this procedure is that it starts with identification of the main trends covering seasonal components of the demand which are then used as a basis for solution of deterministic multi-item inventory control problem. At subsequent stages solutions are studied for the problem of generating additional orders for inventory replenishment (safety stock) to make up for random deviations of the demand from the identified trends (considered in Part II).