Assessing the Benefits of Different Stock-Allocation Policies for a Make-to-Stock Production System
Manufacturing & Service Operations Management
Optimal Stock Allocation for a Capacitated Supply System
Management Science
Stock Rationing in an M/Ek/1 Make-to-Stock Queue
Management Science
A Single-Product Inventory Model for Multiple Demand Classes
Management Science
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This paper considers a periodic-review, infinite-horizon, backorder inventory model with two demand classes, where a base-stock policy controls replenishment. We propose an easy-to-use rationing policy, which reserves inventory for future high priority demands by taking the coming delivery of the next period into consideration, hence called anticipated rationing policy. By applying a multidimensional Markov chain approach, we are able to evaluate system performance exactly. We also derive structural results and find optimal solutions for both @a-service level and @c-service level constraint problems. A numerical comparison study demonstrates the effectiveness of anticipated rationing policy, where the well-known constant level rationing policy serves as the benchmark.