Inventory control for the item with multiple demand classes

The objective of this paper is to provide an inventory control policy for the system that carries a single item with a multiple demand classes, when the demand is Poisson distributed random variable. The inventory control process includes the process of determining the reorder point, and the process of inventory control during the lead time. The goal of the optimization process is to achieve the service level of each demand class as well as the system-wide total service level at a preset desired service level while sustaining a minimum average inventory.