Finding optimal policies in the (S - 1, S ) lost sales inventory model with multiple demand classes

This paper examines the algorithms proposed in the literature for finding good critical level policies in the (S-1,S) lost sales inventory model with multiple demand classes. Our main result is that we establish guaranteed optimality for two of these algorithms. This result is extended to different resupply assumptions, such as a single server queue. As a corollary, we provide an alternative proof of the optimality of critical level policies among the class of all policies.

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Year of publication:	2009-07-23
Authors:	Dekker, Rommert ; van Jaarsveld, van Jaarsveld, W.L.
Institutions:	Faculteit der Economische Wetenschappen, Erasmus Universiteit Rotterdam
Subject:	customer differentiation \| inventory \| multiple demand classes \| rationing lost sales \| stochastic dynamic programming

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Extent:	application/pdf
Series:	Econometric Institute Research Papers. - ISSN 1566-7294.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series RePEc:ems:eureir Number EI 2009-14
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010731601