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Most organizations can reduce their costs associated with the flow of materials
substantially. Inventory control techniques are very important components in this
development process. A thorough understanding of relevant inventory models is
more or less a prerequisite for successful implementation. I hope that this book will
be a useful tool in acquiring such an understanding.
The book is primarily intended as a course textbook. It assumes that the reader
has a good basic knowledge of mathematics and probability theory, and is therefore
most suitable for industrial engineering and management science/operations research
students. The book can be used both in undergraduate and more advanced graduate
courses.
About 15 years ago I wrote a Swedish book on inventory control. This book
has been used in courses in production and inventory control at several Swedish
engineering schools and has also been appreciated by many practitioners in the field.
Positive reactions from many readers made me contemplate writing a new book in
English on the same subject. Encouraging support of this idea from the Springer
Editors Fred Hillier and Gary Folven finally convinced me to go ahead with that
project.
The resulting first edition of this book was published in 2000 and contained quite
a lot of new material that was not included in its Swedish predecessor. It has since
then been used in quite a few university courses in different parts of the world, and
I have received many positive reactions. Still some readers have felt that the book
was too compact and some have asked for additional topics. Some of those who have
used the book as a textbook have also requested more problems to be solved by the
students. The Springer Editors Fred Hillier and Gary Folven then persuaded me to
publish a Second Edition of my book. This new version was quite different from
the previous one. My main goal was to make the new book more suitable as a textbook.
The explanations of different results were more detailed, and a considerable
number of exercises were added. I also included several new topics. These additional
topics include: alternative forecasting techniques, more material on different
stochastic demand processes and howthey can be fitted to empirical data, generalized
treatment of single-echelon periodic review systems, capacity constrained lot sizing,
v
vi Preface
short sections on lateral transshipments and on remanufacturing, coordination and
contracts.
The present revision, which resulted in this Third Edition can be seen as a continuation
of the previous revision. The main focus is still to provide more detailed
explanations and in that way make the book easier to read.
When working with different versions of the book I have been much influenced
by other textbooks and various scientific articles. I would like to thank the authors
of these books and papers for indirectly contributing to my book.
There are also a number of individuals that I would like to thank. Before I started
to work on the second revision, Springer helped me to arrange a review process,
where a number of international scholars were asked to suggest suitable changes in
the book. These scholars were: Shoshana Anily, TelAviv University, Saif Benjaafar,
University of Minnesota, Eric Johnson, Dartmouth College, George Liberopoulos,
University of Thessaly, Suresh Sethi, University of Texas-Dallas, Jay Swaminathan,
University of North Carolina, Ruud Teunter, Lancaster University, Geert-Jan Van
Houtum, Eindhoven University of Technology, LukVanWassenhove, INSEAD, and
Yunzeng Wang, Case Western Reserve University. Some of them had used the first
edition of the book in their classes. The review process resulted in most valuable
suggestions for improvements, and I want to thank all of you very much.
Several colleagues of mine at Lund University have helped me a lot. I would
especially like to mention Johan Marklund for much and extremely valuable help
with both the First and the Second Edition, and Kaj Rosling for his important suggestions
concerning the First Edition. Furthermore, Jonas Andersson, Peter Berling,
Christian Howard, Lina Johansson, Fredrik Olsson, Olle Stenius, Patrik Tydesjö, and
StefanVidgren have reviewed the manuscript at different stages and offered valuable
suggestions which have improved this book considerably. Thank you so much.
Finally, I would also like to thank the Springer people: Fred Hillier, Gary Folven,
Carolyn Ford, Matthew Amboy, Christine Crigler, and Manoj Mishra for their
support, and Sharon Bowker for polishing my English.
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