Psychic stock: An independent variable category of inventory

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.