Journal article
A two-demand-class inventory system with lost-sales and backorders
Abstract
A periodic review inventory system serves two demand classes with different priorities. Unsatisfied demands in the high-priority class are lost, whereas those in the low-priority class are backlogged. We formulate the problem as a dynamic programming model and characterize the structure of the optimal replenishment policy.
Authors
Zhou Y; Zhao X
Journal
Operations Research Letters, Vol. 38, No. 4, pp. 261–266
Publisher
Elsevier
Publication Date
July 2010
DOI
10.1016/j.orl.2010.03.006
ISSN
0167-6377