OPERATIONS RESEARCH LETTERS, vol.36, no.2, pp.259-264, 2008 (Peer-Reviewed Journal)
Article / Article
OPERATIONS RESEARCH LETTERS
Science Citation Index Expanded, Scopus
tactical inventory, service differentiation, two-class, DEMAND CLASSES, PRIORITY, SYSTEMS
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. (C) 2007 Elsevier B.V. All rights reserved.