Constrained inventory allocation

  • Authors:

  • Phillip G. Bradford;Michael N. Katehakis

  • Affiliations:

  • University of Alabama, Department of Computer Science, Tuscaloosa;Rutgers University, Department of MSIS, Newark

  • Venue:
  • MATH'06 Proceedings of the 10th WSEAS International Conference on APPLIED MATHEMATICS
  • Year:
  • 2006

Quantified Score

Hi-index 0.00

Visualization

Abstract

This paper shows how to allocate a limited supply of inventory in a centralized distribution system with multiple retailers subject to minimal supply commitments and maximum delivery limits for each retailer. The objective is to maximize the number of units sold by all retailers in one time period. The analysis is done by building on a classical result of Derman. The demand at each retailer is described by a probability density function and unsold portions of the supply lose their value at the end of the period.