OPM 802 Dynamic and Stochastic Models in Supply Chain Research


The course introduces some fundamental techniques for stochastic modelling and optimization, and it discusses their application in supply chain research. Key topics include: 

  • Stochastic processes,
  • Markov chains,
  • stochastic dynamic programming,
  • inventory theory, 
  • revenue management.


Prerequisites: Fundamentals in mathematics and statistics

  • Formal: none            
  • Literature:
    • Porteus EL (2002). Foundations of Stochastic Inventory Theory, Stanford Business Books
    • Puterman M (1994). Markov Decision Processes: Discrete Stochastic Dynamic Programming, Wiley

Courses                                                       Hours per week                  Self-study

Lecture                                                         2                                           14

ECTS in total                                                                                              8

Form of assessment  

Presentation during the course

Lecturer/Person in charge

Prof. Dr. Ger Koole

Duration of module

1 term



ILIAS group

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Range of application

PhD students