The supply‐side or demand‐servicing functions of inventory are well‐known in the inventory, logistics, and retailing literature. However, this literature has yet to develop the demand‐stimulating function of inventory. This article introduces the concept of psychic stock, defined as retail display inventory for stimulating demand. Psychic stock is a minimum inventory level, which is modelled by a partitioning of psychic, cycle, and safety stock.
Larson, P.D. and DeMarais, R.A. (1990), "Psychic Stock: An Independent Variable Category of Inventory", International Journal of Physical Distribution & Logistics Management, Vol. 20 No. 7, pp. 28-34. https://doi.org/10.1108/EUM0000000000370
MCB UP Ltd
Copyright © 1990, MCB UP Limited