Syllabus
Independent Demand Systems
(Probabilistic Models)
Q- system
P- system
Mathematical modelling under known stock out costs and
service levels
Bullwhip effect
Information and supply chain trade-offs.
1/16/2021
1
, Independent Demand Systems
P- systems:
• P-Model in inventory control is also known as the fixed period system, and
the orders are placed after a fixed interval of time
• Inventory levels for multiple stock items reviewed at the same time- can
be reordered together.
Q-systems:
• This model is also known as the fixed order quantity system. Here the
order is placed whenever the inventory level reaches a certain level. The
order is triggered when the inventory level reaches the reorder point.
• Each stock item is reordered at different times.
1/16/2021
2
Independent Demand Systems
(Probabilistic Models)
Q- system
P- system
Mathematical modelling under known stock out costs and
service levels
Bullwhip effect
Information and supply chain trade-offs.
1/16/2021
1
, Independent Demand Systems
P- systems:
• P-Model in inventory control is also known as the fixed period system, and
the orders are placed after a fixed interval of time
• Inventory levels for multiple stock items reviewed at the same time- can
be reordered together.
Q-systems:
• This model is also known as the fixed order quantity system. Here the
order is placed whenever the inventory level reaches a certain level. The
order is triggered when the inventory level reaches the reorder point.
• Each stock item is reordered at different times.
1/16/2021
2
