HISTORICAL SKETCH OF INVENTORY PROBLEMS

HISTORICAL SKETCH OF INVENTORY PROBLEMS:
Although inventory problems are as old as history itself, it has only been since the turn of
the century that any attempts has been made to employ analytical techniques in studying these
problems. The initial impetus for the use of mathematical methods in inventory analysis
seems to have been supplied by the simultaneous growth of the manufacturing industries and
the various branches of engineering, – especially manufacturing engineering. The real need for
analysis was first recognized in industries that had a combination of production scheduling
problems and inventory problems i.e. in situations in which items were produced in lots – the
cost of set up being fairly high – and then stored at a factory warehouse.