Which mathematical method is predominantly used in modern retail inventory optimization systems to handle demand uncertainty while minimizing carrying costs?

Modern retail inventory management increasingly relies on sophisticated mathematical models to optimize stock levels, reduce costs, and prevent stockouts. These systems incorporate various mathematical algorithms to predict demand patterns and make inventory decisions. How well do you understand the mathematical foundations behind today's advanced retail inventory management systems?

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Stochastic Dynamic Programming
Euclidean Geometry
Markov Chain Monte Carlo without probabilistic demand forecasting
Simple Moving Averages with fixed service levels