Policies utilizing tactical inventory for service-differentiated customers

2008-03-01
Duran, Serhan
Liu, Tieming
Simchi-Levi, David
Swann, Julie L.
We consider a manufacturer serving two customer classes where one wants the item immediately and the second receives a discount to accept a delay. We show that an (S, R, B) base-stock policy is optimal under differentiation and non-differentiation where S, R, and B are the order-up-to, reserve-up-to, and backlog-up-to amounts.

Citation Formats
S. Duran, T. Liu, D. Simchi-Levi, and J. L. Swann, “Policies utilizing tactical inventory for service-differentiated customers,” OPERATIONS RESEARCH LETTERS, vol. 36, no. 2, pp. 259–264, 2008, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/45928.