Managing multi-customer service level requirements with a simple rationing policy

Managing multi-customer service level requirements with a simple rationing policy

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Article ID: iaor20042960
Country: Netherlands
Volume: 31
Issue: 6
Start Page Number: 477
End Page Number: 482
Publication Date: Nov 2003
Journal: Operations Research Letters
Authors:
Abstract:

We consider the problem of managing multi-customer service level requirements when inventory is rationed according to a priority list. We demonstrate that the optimal purchasing quantity for the two-customer problem may be found through a line search. For multi-customer problems, we derive a formula to find a near-optimal purchasing quantity.

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