Journal
COMPUTERS & INDUSTRIAL ENGINEERING
Volume 65, Issue 2, Pages 331-340Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.cie.2013.02.005
Keywords
Two demand classes; Inventory rationing; Service level constraint
Funding
- National Natural Science Foundation of China [70901062, 71271167]
- China National Science and Technology Infrastructure Program [2012BAH08F06]
- State Key Laboratory for Manufacturing Systems Engineering (Xi'an Jiaotong University)
Ask authors/readers for more resources
This paper considers a periodic-review, infinite-horizon, backorder inventory model with two demand classes, where a base-stock policy controls replenishment. We propose an easy-to-use rationing policy, which reserves inventory for future high priority demands by taking the coming delivery of the next period into consideration, hence called anticipated rationing policy. By applying a multidimensional Markov chain approach, we are able to evaluate system performance exactly. We also derive structural results and find optimal solutions for both alpha-service level and gamma-service level constraint problems. A numerical comparison study demonstrates the effectiveness of anticipated rationing policy, where the well-known constant level rationing policy serves as the benchmark. (C) 2013 Elsevier Ltd. All rights reserved.
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