A heuristic for rationing inventory in two demand classes with backlog costs and a service constraint

Abstract

We study the rationing policy in an inventory system with two demand classes and different service criteria for backorders. Due to the difference of customer values, system performance sometimes has to be measured with a mixture of penalty cost and service level in managing inventory. With a continuous review   , r Q system, we develop a critical level… (More)
DOI: 10.1016/j.cor.2013.06.001

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