Basestock
Basestock, or base stock level, is an inventory management concept used to define the target level of on-hand stock for each item in a system. In a basestock policy, each item has a base stock level S. The inventory position is monitored continuously; whenever the stock position falls below S, an order is placed to raise the position back to S. In effect, the order quantity equals S minus the current inventory position (or zero if already at or above S).
Basestock is also known as an order-up-to policy because orders bring the inventory up to the base
Choosing S involves balancing holding costs against stockout costs and service level targets, and it often
Basestock policies are contrasted with other replenishment rules such as (s, Q) policies, where orders are triggered
Limitations include reliance on accurate demand and lead-time estimates; for items with rapid obsolescence or highly