Ph. Melchiors
http://repub.eur.nl/ppl/7188/
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RePub, Erasmus University RepositoryInventory Rationing in an (s, Q) Inventory Model with Lost Sales and Two Demand Classes
http://repub.eur.nl/pub/15417/
Sat, 01 Jan 2000 00:00:01 GMT<div>Ph. Melchiors</div><div>R. Dekker</div><div>M.J. Kleijn</div>
Whenever demand for a single item can be categorised into classes of different priority, an inventory rationing policy should be considered. In this paper we analyse a continuous review (s, Q) model with lost sales and two demand classes. A so-called critical level policy is applied to ration the inventory among the two demand classes. With this policy, low-priority demand is rejected in anticipation of future high-priority demand whenever the inventory level is at or below a prespecified critical level. For Poisson demand and deterministic lead times, we present an exact formulation of the average inventory cost. A simple optimisation procedure is presented, and in a numerical study we compare the optimal rationing policy with a policy where no distinction between the demand classes is made. The benefit of the rationing policy is investigated for various cases and the results show that significant cost reductions can be obtained.Inventory rationing in an (s, Q) inventory model with lost sales a two demand classes
http://repub.eur.nl/pub/1538/
Thu, 03 Dec 1998 00:00:01 GMT<div>Ph. Melchiors</div><div>R. Dekker</div><div>M.J. Kleijn</div>
Whenever demand for a single item can be categorized into classes of different priority, an inventory rationing policy should be
considered. In this paper we analyse a continuous review (s,Q) model with lost sales and two demand classes. A so-called critical level policy is applied to ration the inventory among the two demand classes. With this policy, low--priority demand is rejected in anticipation of future high--priority demand whenever the inventory level is at or below a prespecified critical level.
For Poisson demand and deterministic lead times,
we present an exact formulation of the average inventory cost. A simple optimization procedure is presented, and in a numerical study we
compare the optimal rationing policy with a policy where no distinction between
the demand classes is made. The benefit of the rationing policy is investigated for various
cases and the results show that significant cost reductions can be obtained.