Optimal Stock Allocation for a Capacitated Supply System
Management Science
Optimal Control Of A Make-To-Stock System With Adjustable Service Rate
Probability in the Engineering and Informational Sciences
Dynamic Capacity Management with Substitution
Operations Research
Capacity Rationing in Stochastic Rental Systems with Advance Demand Information
Operations Research
Computers & Mathematics with Applications
Critical level policies in lost sales inventory systems with different demand classes
EPEW'11 Proceedings of the 8th European conference on Computer Performance Engineering
Optimal production and rationing decisions in supply chains with information sharing
Operations Research Letters
Strategies for a Centralized Single Product Multiclass M/G/1 Make-to-Stock Queue
Operations Research
Anticipated rationing policy for two demand classes under service level constraints
Computers and Industrial Engineering
| Hi-index | 0.01 |
This paper considers the stock rationing problem of a single-item, make-to-stock production system with several demand classes and lost sales. When demand is Poisson and processing time has an Erlang distribution, we show that a single-state variable called work storage level can be employed to completely capture the information regarding inventory level and the status of current production. The optimal rationing policy can be characterized by a sequence of monotone critical work storage levels. For each demand class, there exists a work storage level at or below which it is optimal to start rejecting the demand of this class in anticipation of future arrival of higher-priority demands. The optimal production policy can also be characterized by a critical work storage level. Our numerical examples indicate that a critical stock level policy, which ignores information on the status of current production, performs very well.