Abstract
We consider a single-item lost sales inventory model with different classes of customers. Each customer class may have different lost sale penalty costs. We assume that the demands follow a Poisson process and we consider a single replenishment hypoexponential server. We give a Markov decision process associated with this optimal control problem and prove some structural properties of its dynamic programming operator. This allows us to show that the optimal policy is a critical level policy. We then discuss some possible extensions to other replenishment distributions and give some numerical results for the hyperexponential server case.
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Wieczorek, A., Bušić, A., Hyon, E. (2011). Critical Level Policies in Lost Sales Inventory Systems with Different Demand Classes. In: Thomas, N. (eds) Computer Performance Engineering. EPEW 2011. Lecture Notes in Computer Science, vol 6977. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-24749-1_16
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DOI: https://doi.org/10.1007/978-3-642-24749-1_16
Publisher Name: Springer, Berlin, Heidelberg
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