Inventory management using (s,S) policy with backlog and constant lead time

Effective inventory management is crucial for supermarkets, especially in managing food products where maintaining availability and minimizing costs must becarefully balanced. This thesis explores the application and optimization of the (s,S)inventory policy, focusing on intermittent demand, constant lead times, and backlogscenarios common in supermarket operations. The research develops a mathematical model tailored to any goods, aiming to minimize total costs associated with holding, ordering, and stockouts under periodic review conditions.By integrating key factors such as order-up-to levels and constant lead times,the model offers a structured approach to addressing backlogs. The results providepractical insights into how supermarkets can enhance inventory optimization,improving service levels while reducing costs in complex supply chains. This studycontributes to the understanding of inventory management in retail environments with variable demand and emphasizes the importance of balancing cost-efficiency and product availability.