An (s,Q) Markovian inventory system with lost sales and two demand classes

Authors:
K. P. Sapna Isotupa
Affiliations:
School of Business and Economics, Wilfrid Laurier University, Waterloo, Ontario, Canada N2L 3C5
Venue:
Mathematical and Computer Modelling: An International Journal
Year:
2006

Citing 2
Cited 1

Inventory rationing in a make-to-stock production system with several demand classes and lost sales

Management Science
A Threshold Inventory Rationing Policy for Service-Differentiated Demand Classes

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An accurate and reliable solution algorithm for the (Q, r) inventory system with a fixed shortage cost

Mathematical and Computer Modelling: An International Journal

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Abstract

In this article a lost sales (s,Q) inventory system with two types of customers viz. ordinary and priority customers and exponentially distributed leadtimes is analyzed. Demands from each type of customer arrive according to two independent Poisson processes with different parameters. The expression for the long-run expected cost rate is derived. A computationally efficient algorithm for determining the optimal values for reorder level and reorder quantity is developed.