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
Manufacturing & Service Operations Management
Transformation of a production/assembly washing machine lines into a lean manufacturing system
WSEAS Transactions on Systems and Control
Dynamic Capacity Management with Substitution
Operations Research
Capacity Rationing in Stochastic Rental Systems with Advance Demand Information
Operations Research
Computers & Mathematics with Applications
TECHNICAL NOTE---Procurement Strategies with Unreliable Suppliers
Operations Research
Policies utilizing tactical inventory for service-differentiated customers
Operations Research Letters
Optimal production and rationing decisions in supply chains with information sharing
Operations Research Letters
A two-demand-class inventory system with lost-sales and backorders
Operations Research Letters
Queuing system for different classes of customers
International Journal of Business Information Systems
A possibilistic multiple objective pricing and lot-sizing model with multiple demand classes
Fuzzy Sets and Systems
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We consider a periodic review inventory system with two priority demand classes, one deterministic and the other stochastic. The deterministic demand must be met immediately in each period. However, the units of stochastic demand that are not satisfied during the period when demand occurs are treated as lost sales. At each decision epoch, one has to decide not only whether an order should be placed and how much to order, but also how much demand to fill from the stochastic source. The firm has the option to ration inventory to the stochastic source (i.e., not satisfy all customer demand even though there is inventory in the system).We first characterize the structure of the optimal policy. We show that, in general, the optimal order quantity and rationing policy are state dependent and do not have a simple structure. We then propose a simple policy, called ( s, k, S) policy, wheres andS (ordering policy) determine when and how much to order, whilek (rationing policy) specifies how much of the stochastic demand to satisfy. We report the results of a numerical study, which shows that this simple policy works extremely well and is very easy to compute.