Inventory Systems

Part of the International Series in Operations Research & Management Science book series (ISOR, volume 161)


In traditional inventory systems the typical decisions involve the determination of the level of service to be provided, the frequency of or time between replenishments R, the order up to level S which determines how much to order, and the reorder point s which determines when in the cycle the order is placed. Depending on the conditions and assumptions of the inventory system, these values can be either parameters or variables and this has created many different types of inventory control policies. An inventory control policy is considered “optimal” if it minimizes the long-range or average total system cost. While this long-range average cost differs significantly from industry to industry and from product to product, 25% of the product value is often used as a first order approximation of the average cost for holding a product in inventory for 1 year.


Supply Chain Service Level Inventory Level Order Quantity Inventory Policy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Schneider, H. (1981). Effect of service-levels on the order-points and order-levels in inventory models. International Journal of Production Research, 19(6), 615–631.CrossRefGoogle Scholar
  2. Silver E., & Peterson, R. (1985). Decision systems for inventory management and production planning (2nd ed.). New York: Wiley.Google Scholar
  3. Silver, E. A., & Meal, H. C. (1973). A heuristic for selecting lot size quantities for the case of a deterministic time-varying demand rate and discrete opportunities for replenishment. Production and Inventory Management, 14, 64–74.Google Scholar
  4. Silver, E., Pyke, D., & Peterson, R. (1998). Inventory management and production planning and scheduling. New York: Wiley.Google Scholar
  5. Wagner, H. M., & Whitin, T. M. (1958). Dynamic version of the economic lot size model. Management Science, 5, 89–96.CrossRefGoogle Scholar
  6. Waters, C. (1992). Inventory control and management. New York: John Wiley.Google Scholar
  7. Wilson, R. (2007). 18th Annual the state of logistics report: the new face of logistics. CSCMP.Google Scholar
  8. Zipkin, P. (2000). Foundations of inventory management. New York: McGraw-Hill.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  1. 1.H. Milton Stewart School of Industrial & Systems EngineeringGeorgia Institute of TechnologyAtlantaUSA

Personalised recommendations