Abstract
A study of the "variable S" inventory model is given where re-ordering is an extension of the (S, T) policy, Since the concept of "variable S" policy is analogous to one of servo theory, this problem is discussed from the viewpoint of linear control theory. The ordering rule in the time region is derived by making use of finite exponential smoothing which is an efficient forecasting method. A selection of feedback parameters is also discussed with a view to achieving an excellent inventory policy.
