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1
Introduction to Inventory and Materials
Management
Why Inventory
Classification of Inventory Problems
• Hence, there are two parameters, related to above questions, for any
inventory control system.
• A number of factors affect this inventory problem.
• Each of these factors may have different levels.
• Combinations of the types and levels of these factors determine classes of
inventory problems.
• Over and above these factors as stated, the demand distribution over time
may be assumed to be fixed (stationary) or variable (non-stationary).
P2
P4
P1
P2
P4
P3
P1
P2
P4
P1
P2
P4
P5