An analysis of the stratification decay in thermally stratified vertical cylindrical cool storage systems is presented using a one dimensional conjugate heat conduction model. The degree of thermal stratification depends upon the length to diameter ratio, wall thickness to length ratio, the thermo-physical properties of the material of the storage tank, the type and thickness of the insulation and the design of the admission system for both cold and warm water. A parametric study of the stratified chilled water storage tanks in charging, discharging and stagnation modes of operation is made. The thermoclines degrade due to the heat transfer from the ambient, thermal diffusion in the storage tank, axial wall conduction and mixing due to admission of the fluid in the storage tank during charging and discharging. The degree of thermal stratification in storage tanks is expressed in terms of either heat capacity (thermal capacitance ratio) or modified Biot Number. A mixing parameter accounts for the effect of mixing on thermal stratification in both charge and discharge cycles.