A service station plays an important role in the petroleum product distribution terminal. With the increase in petroleum consumption in China, the inventory theory should be applied in the stock control of service stations. In this paper the inventory theory including its background and characteristics is introduced. At the same time, the application of the theory in some trades today, especially in petroleum trade, is analyzed. Then (s, S) stochastic model is advanced, which is established according to the principle of operational research and, based on this model, a sample is given, which discusses the details of application in the stock control of service stations. The sample is simplified but implies the validity of the model in optimizing the storage of petroleum products in the market.
