Optimal Stock Allocation for a Capacitated Supply System
Optimal Stock Allocation for a Capacitated Supply System
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DOI:
10.1287/mnsc.48.11.1486.263
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发表时间:
2002-11
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影响因子:
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通讯作者:
F. Véricourt;F. Karaesmen;Y. Dallery
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文献类型:
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作者:
F. Véricourt;F. Karaesmen;Y. Dallery
We consider a capacitated supply system that produces a single item that is demanded by several classes of customers. Each customer class may have a different backorder cost, so stock allocation arises as a key decision problem. We model the supply system as a multi customer make-to-stock queue. Using dynamic programming, we show that the optimal allocation policy has a simple and intuitive structure. In addition, we present an efficient algorithm to compute the parameters of this optimal allocation policy. Finally, for a typical supply chain design problem, we illustrate that ignoring the stock allocation dimension--a frequently encountered simplifying assumption--can lead to incorrect managerial decisions.