Inventory Rationing in an (ss Q) I N Ventory Model with Lost Sales and Two Demand Classes
نویسندگان
چکیده
Whenever demand for a single item can be categorized into classes of di erent priority an inventory rationing policy should be considered In this paper we analyse a continuous review s Q model with lost sales and two demand classes A so called critical level policy is applied to ration the inventory among the two demand classes With this policy low priority demand is rejected in anticipation of future high priority demand whenever the inventory level is at or below a prespeci ed critical level For Poisson demand and deterministic lead times we present an exact formulation of the average inventory cost A simple optimization procedure is presented and in a numer ical study we compare the optimal rationing policy with a policy where no distinction between the demand classes is made The bene t of the rationing policy is investi gated for various cases and the results show that signi cant cost reductions can be obtained
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