Dynamic rationing policies for product with incremental upgrading demands

In environments in which several distinct classes of demand exist for a fixed number of a perishable product and backlogging is not allowed, the total sales revenue depends on the sales number for each demand-class. In such environments it is important to establish a rationing policy that provides decision rules for accepting or denying individual requests during the entire planning period. Thus, a dynamic rationing policy is proposed to meet the situation wherein a significant number of rejected customers are expected to sequentially request the next higher-fare demand-class. The proposed dynamic rationing policy has the ability to revise decision rules according to the actual selling status over the entire planning period.