Policies utilizing tactical inventory for service-differentiated customers

Date

2008-03-01

Author

Duran, Serhan
Liu, Tieming
Simchi-Levi, David
Swann, Julie L.

Metadata

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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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.

Subject Keywords

Management Science and Operations Research, Industrial and Manufacturing Engineering, Software, Applied Mathematics

URI

https://hdl.handle.net/11511/45928

Journal

OPERATIONS RESEARCH LETTERS

DOI

https://doi.org/10.1016/j.orl.2007.05.013

Collections

Department of Industrial Engineering, Article

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.