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Stock optimization for service differentiated demands with fill rate and waiting time requirements. (English) Zbl 1525.90044

Summary: We develop a computationally efficient optimization procedure to optimize stock and rationing levels for a model consisting of a single product with two priority-demand classes, given by mutually independent, stationary, Poisson demand processes. Each priority class has its own service levels requirements, defined by the class-specific fill rate and expected waiting-time levels. Order lead times are independent and identically distributed random variables. This is the first study in this setting to consider both waiting-time constraints along with fill rate requirements.

MSC:

90B05 Inventory, storage, reservoirs
90C40 Markov and semi-Markov decision processes
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