Abstract
For the (S-1,S) lost sales inventory model with multiple demand classes that have different lost sales penalty cost parameters, three accurate and efficient heuristic algorithms are presented that, at a given base stock level, aim to find optimal values for the critical levels, i.e., values that minimize inventory holding and penalty cost.
Keywords: Inventory; Multiple demand classes; Customer differentiation; Rationing; Lost sales
Original language | English |
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Pages (from-to) | 493-502 |
Number of pages | 10 |
Journal | Operations Research Letters |
Volume | 35 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2007 |