Advancements in Inventory Management: Insights From INFORMS Franz Edelman Award Finalists

Abstract

This article provides a comprehensive overview of the advancements and applications of operations research (OR) and management science (MS) in inventory management described by the Franz Edelman Award finalists from 1985 to 2023. The research presents the transformative potential of OR/MS in addressing complex inventory management challenges across various industries. Through an in-depth examination of the methodologies and solutions employed by these studies, we highlight the strategic implementations of several OR/MS techniques, including simulation-optimization, deep learning and advanced forecasting, dynamic pricing and yield management, and stochastic modeling. The analysis reveals the tangible benefits realized, such as optimized inventory levels, reduced costs, improved profits and revenue, and improved customer satisfaction. This research underscores the critical role of inventory process optimization and risk mitigation in navigating uncertainties and demand fluctuations. The managerial insights derived from these initiatives provide a roadmap for practitioners seeking to implement advanced OR/MS methodologies in real-world inventory management. The findings also encourage the adoption of innovative methods to enhance the operational efficiency and competitiveness. Through this exploration, we aim to stimulate further innovation and research in the evolving field of inventory management and to celebrate the achievements in applied analytics brought forth by the Franz Edelman Award finalists.