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: | Zhang Jun |
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.