In these lecture notes which grew out of my lectures at the Honours classes of Honash University, I have attempted to develop queueing and storage problems from a unified viewpoint. It has been recognized a decade ago that many of the queueing and storage problems belong to the same family of stochastic processes; so a problem in storage theory may bave an analogue in a queueing situation and vice versa. In my notes I have highlighted this aspect and tried to develop a broad perspective in a student rather than to work out in detail the various e~rcises in queueing and inventory problems which are mostly available in the literature produced so far. I have also pointed out some of the practical applications of some theoretical results which appear to be important for an Operational Research worker. Hany of the results given in these notes have cropped out of the author's own research over the last decade. Some new ideas which have scope for further exploitation have been given in most of the chapters (e. g. concept of cybernetic systems in Chapter 3, optimality problems in Chapter 4 and some problems in Chapter 2, etc. ): these may benefit graduate students. I thank my students for various discussions inside and outside the classrooms. I am also grateful to Mrs A. Darby for painfully and accurately typing out my manuscript. Ami tava Ghosal September 1969 Index Chapter 1.