A new two-bin policy for inventory systems with differentiated demand classes

• Main Authors: Ghosh, Sugoutam, Piplani, Rajesh, Viswanathan, S.
• Other Authors: School of Mechanical and Aerospace Engineering
• Format: Article
• Language: English
• Published: 2014
• Subjects: DRNTU::Business::Operations management::Inventory control
• Online Access: https://hdl.handle.net/10356/101597; http://hdl.handle.net/10220/24300
• Institution: Nanyang Technological University

We consider an inventory system under continuous review with two demand classes that are different in terms of service level required (or penalty cost incurred for backordering of demand). Prior literature has proposed the critical level rationing (CLR) policy under which the demand from the lower p...