Journal
ANNALS OF OPERATIONS RESEARCH
Volume 233, Issue 1, Pages 411-421Publisher
SPRINGER
DOI: 10.1007/s10479-013-1407-3
Keywords
Markov chain; Stochastic processes; Inventory; Multiple classes of customers; Rationing; Cost comparison
Categories
Ask authors/readers for more resources
In this paper we analyze a continuous review, lost sales (S-1,S) inventory system with two demand classes-high priority and low priority. We compare two different policies-one where the two classes of customers are treated exactly alike and the other where a threshold rationing policy is used. We prove that under certain conditions there is a sub-optimal rationing policy which yields a lower cost for the supplier and higher service levels for both the high priority and low priority customers than the optimal policy where the two customers are treated alike.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available