Titlebook: Inventory Rationing; A New Modeling Appro Karin Möllering Book 2007 Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2007 Invent

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Basic Concepts of Inventory Managementdoes not include governmental or non-profit organizations. Manufacturing accounts for 32 % of the inventory, wholesale for 22 % and retail for 28 %. The sum-in-itself already indicates the importance of inventory management.

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Comparing Stochastic Processesor. Different ordering relations have been studied that also incorporate additional information such as convexity (Stoyan 1983). We will only be interested in the simple ordering of cumulative distribution functions.

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Dynamic Rationing Policies under periodic review now complete characterization of such an optimal policy is available. In this chapter we address this issue and suggest two state-dependent rationing policies for periodic review settings that take into account the backorder clearing.

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Conclusion and Critical Review. Applying a new modeling approach, we have optimized a constant critical level policy under average cost criterion for two situations: In the one case, the two customer classes have been prioritized by penalty costs. In the other case, they have been prioritized based on service requirements. We have also looked into dynamic rationing policies.

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Numerical Solution of Infinite Markov ChainsIn Section 4.3, we saw that for a finite state space, deriving the stationary distribution is equivalent to solving the following linear equation system.

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A Markov-Chain Based Modeling ApproachIn this chapter, we introduce our core model. We explain the sequence of events, derive the fundamental role of class 2 backorders and introduce our approach to model those.

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Prioritization by Service LevelsIn contrast to the setting of the previous chapter, the two demand classes are now prioritized based on service requirements. We will start with .- service levels, . and .. Without loss of generality, we assume that . ≥ .. Later, we will also study β-service requirements.