Which mathematical models are used in Inventory Planning and Optimization?

The correct choice emphasizes the use of single and multi-echelon optimization models, which are fundamental in inventory planning and optimization.

These models are designed to optimize inventory levels across various locations in a supply chain—whether it's a single location (single-echelon) or multiple locations (multi-echelon). They take into account the complexities and interdependencies in supply chains, allowing businesses to minimize costs while maintaining service levels. Single-echelon models focus on optimizing inventory at one level of the supply chain, while multi-echelon models extend this optimization across several tiers, thus balancing stock across warehouses, distribution centers, and retail locations. This holistic approach helps in making more informed decisions about inventory replenishment, ordering policies, and overall supply chain efficiency.

In contrast, other choices either present overly simplistic methods, such as basic arithmetic computations, or limit the scope to particular types of analysis, like statistical or linear regression models, which do not encompass the full range of complexities involved in inventory management.