Optimal Policies of an Inventory System with Multiple Demand Classes |
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Authors: | ZHOU Yun ZHAO Xiaobo |
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Institution: | ZHOU Yun,ZHAO Xiaobo** Department of Industrial Engineering,Tsinghua University,Beijing 100084,China |
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Abstract: | This paper deals with a periodic review inventory system serving multiple demand classes that are differentiated by the treatment for shortages.Shortages of some classes were treated according to lost-sales,while those of the others were backlogged.In each period,both replenishment decisions of inventory and allocation for all classes were made by a setup cost for each replenishment.By using the approach of stochastic dynamic programming formulation,the optimal replenishment policy is a state-dependent(s,S)... |
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Keywords: | inventory setup cost demand classes lost-sale backorder |
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