A Threshold Inventory Rationing Policy for Service - Differentiated Demand Classes


Motivated by a study of the logistics systems used to manage consumable service parts for the U.S. military, we consider a static threshold-based rationing policy that is useful when pooling inventory across two demand classes characterized by different arrival rates and shortage (stockout and delay) costs. The scheme operates as a (Q, r) policy with the… (More)
DOI: 10.1287/mnsc.49.6.683.16022

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