Aggregate constrained inventory systems with independent multi-product demand: Control practices and theoretical limitations

In many practical problems inventory managers are confronted with aggregate constraints that result typically from limitations in workspace, workforce, investment or from targeted service levels. In this paper we discuss some multi-product inventory problems with independent items under one or multiple aggregate constraints. We analyze some recent and relevant references grouped into five categories: deterministic lead-time demand, news vendor, base-stock policy, (r, Q) policy and (s, S) policy. We investigate the proposed model formulations, the algorithmic approaches and benefits of a system approach versus an item approach. A multi-product wholesaler case study is presented. Finally we highlight the limitations from a practical viewpoint of these models and point out some possible direction for future improvements. (C) 2011 Elsevier B.V. All rights reserved.