search query: @indexterm SERVICE MANAGEMENT / total: 228
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Author: | Deshpande, V. Cohen, M.A. Donohue, K. |
Title: | A threshold inventory rationing policy for service-differentiated demand classes |
Journal: | Management Science
2003 : JUN, VOL. 49:6, p. 683-703 |
Index terms: | Armed forces Inventory control Logistics Product differentiation Rationing Service management USA |
Language: | eng |
Abstract: | Motivated by a study of the logistics systems used to manage consumable service parts for the U.S. military, the authors consider a static threshold-based rationing policy that is useful when pooling inventory across two demand classes characterized by different arrival rates and shortage (stockout and delay) costs. The scheme operates as a (Q, r) policy with the following feature: Demands from both classes are filled on a first-come-first-serve basis as long as on-hand inventory lies above a threshold level K. Once on-hand inventory falls below this level, low-priority (low shortage cost) demand is backordered while high-priority demand continues to be filled. |
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