| 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.