Abstract
We develop a computationally efficient optimization procedure to optimize stock and rationing levels for a model consisting of a single product with two priority–demand classes, given by mutually independent, stationary, Poisson demand processes. Each priority class has its own service levels requirements, defined by the class-specific fill rate and expected waiting-time levels. Order lead times are independent and identically distributed random variables. This is the first study in this setting to consider both waiting-time constraints along with fill rate requirements.
Original language | English |
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Pages (from-to) | 367-372 |
Number of pages | 6 |
Journal | Operations Research Letters |
Volume | 46 |
Issue number | 3 |
DOIs | |
Publication status | Published - May 2018 |
Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2018 Elsevier B.V.