Evolution of Inventory Control Models: A Narrative Review

Abstract

This paper examined the evolution of inventory control models from traditional models which were largely mathematically based to contemporary digital models. Theoretically founded on the Diffusion of Innovation (DOI) theory, the review comprehensively synthesised recent scholarly works of literature to identify patterns and trends as well as analysing the future trajectory of inventory control models. Findings revealed that evolution from deterministic models such as Economic Order Quantity (EOQ) and (s,S) policies, to a more integrated approach of Material Requirements Planning (MRP), Just-in-Time (JIT) and Enterprise Resource Planning (ERP) and the contemporary era of digital technologies which includes the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and blockchain technology, have transformed inventory management into a strategic and data-driven function with real-time visibility and more predictive analytics, and seamless supply chain integration. In addition, adoption of these new technologies was accompanied by long-term benefits including agility, cost optimization in the long run, and customer responsiveness. This review concludes that embracing digital inventory models is imperative for sustainable competitiveness in increasingly complex global supply chains.