Stock optimization for service differentiated demands with fill rate and waiting time requirements

Oguzhan Vicil*, Peter Jackson

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

4 Citations (Scopus)

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 languageEnglish
Pages (from-to)367-372
Number of pages6
JournalOperations Research Letters
Volume46
Issue number3
DOIs
Publication statusPublished - May 2018

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