An Efficient Inventory Rationing Strategy for Systems with Two Demand Classes and Backordering

For systems with two customer classes and backordering, the formulae for the optimal dynamic critical levels in the literature are too complex to be extended to large values of critical levels. In this paper, an efficient method is introduced to obtain approximate closed-form expressions for the dyn...

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Main Authors: Liu, S., Zhang, Changyong
Format: Journal Article
Published: Taylor & Francis 2015
Online Access:http://hdl.handle.net/20.500.11937/45833
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author Liu, S.
Zhang, Changyong
author_facet Liu, S.
Zhang, Changyong
author_sort Liu, S.
building Curtin Institutional Repository
collection Online Access
description For systems with two customer classes and backordering, the formulae for the optimal dynamic critical levels in the literature are too complex to be extended to large values of critical levels. In this paper, an efficient method is introduced to obtain approximate closed-form expressions for the dynamic critical levels, even for large values. It is further verified by numerical results the accuracy of the approximate expressions, from which important managerial insights can be obtained.
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format Journal Article
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institution Curtin University Malaysia
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last_indexed 2025-11-14T09:27:24Z
publishDate 2015
publisher Taylor & Francis
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spelling curtin-20.500.11937-458332017-09-13T14:25:25Z An Efficient Inventory Rationing Strategy for Systems with Two Demand Classes and Backordering Liu, S. Zhang, Changyong For systems with two customer classes and backordering, the formulae for the optimal dynamic critical levels in the literature are too complex to be extended to large values of critical levels. In this paper, an efficient method is introduced to obtain approximate closed-form expressions for the dynamic critical levels, even for large values. It is further verified by numerical results the accuracy of the approximate expressions, from which important managerial insights can be obtained. 2015 Journal Article http://hdl.handle.net/20.500.11937/45833 10.1080/00207543.2015.1027013 Taylor & Francis restricted
spellingShingle Liu, S.
Zhang, Changyong
An Efficient Inventory Rationing Strategy for Systems with Two Demand Classes and Backordering
title An Efficient Inventory Rationing Strategy for Systems with Two Demand Classes and Backordering
title_full An Efficient Inventory Rationing Strategy for Systems with Two Demand Classes and Backordering
title_fullStr An Efficient Inventory Rationing Strategy for Systems with Two Demand Classes and Backordering
title_full_unstemmed An Efficient Inventory Rationing Strategy for Systems with Two Demand Classes and Backordering
title_short An Efficient Inventory Rationing Strategy for Systems with Two Demand Classes and Backordering
title_sort efficient inventory rationing strategy for systems with two demand classes and backordering
url http://hdl.handle.net/20.500.11937/45833