Inventory Control Method

For any big or small organization main challenge to maintain the inventory, timely stock availability and control the over stock we have to manage the inventory system here is the one model to control the inventory for your organization.

  (s,Q) Method

We consider now inventory systems similar to the deterministic models, however, we allow demand to be stochastic. There are a number of ways one might operate an inventory system with random demand. In this section, we consider the (s, Q) inventory policy, alternatively called the reorder point, order quantity system. In the figure shows the inventory pattern determined by the (s, Q) inventory policy. The model assumes that the inventory level is observed at all times. This is called continuous review. When the level declines to some specified reorder point, s, an order is placed for a lot size, Q. The order arrives to replenish the inventory after a lead time, L.