This paper classifies inventory management policies into linear inventory management policies (LIMP)and nonlinear inventory management policies(NIMP),and studies the demand propagation processes in supply chains under LIMP policies.The concept and the feasible condition of LIMP policy are presented, and three kinds of familiar inventory policies are illustrated as examples of LIMP policies.Assuming that the market demand follows an autoregressive moving average(ARMA)time-series and the supply ch...