Optimal policy for a multi-location inventory system with a quick response warehouse

We study a multi-location inventory problem with a so-called quick response warehouse. In case of a stock-out at a local warehouse, the demand might be satis??ed by a stock transfer from the quick response warehouse. We derive the optimal policy for when to accept and when to reject such a demand at the quick response warehouse. We also derive conditions under which it is always optimal to accept these demands. Furthermore, we conduct a numerical study and consider model variations.