Abstract
In this chapter we discuss inventory systems where several demand classes may be distinguished. In particular, we focus on single-location inventory systems and we analyse the use of a so-called critical level policy. With this policy some inventory is reserved for high-priority demand. A number of practical examples where several demand classes naturally arise are presented, and the implications and modelling of the critical level policy in distribution systems are discussed. Finally, an overview of the literature on inventory systems with several demand classes is given.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Atkins, D./ Katircioğlu, K.K. (1995): Managing inventory for multiple customers requiring different levels of service. Working Paper 94-MSC-015, University of British Columbia, Vancouver, B.C.
Ballou, R.H. (1992): Business Logistics Management, 3rd edition. (Prentice Hall) Englewood Cliffs, NJ.
Chikán, A. (1990): Inventory Models. (Akadémiai Kiadó) Budapest.
Cohen, M.A./ Kleindorfer, P.R./ Lee, H.L. (1988): Service constrained (s, S) inventory systems with priority demand classes and lost sales, in: Management Science, 34:482–499.
Dekker, R./ Hill, R.M./ Kleijn, M.J. (1997): On the (S-1, S) lost sales inventory model with priority demand classes. Report EI9743/A, Erasmus University Rotterdam, The Netherlands.
Dekker, R./ Kleyn, M.J./ de Rooij, P.J. (1998): A spare parts stocking system based on equipment criticality, in: International Journal of Production Economics, 56–57:69-77.
Eppen, G./ Schrage, L. (1981): Centralized ordering policies in a multi-warehouse system with lead times and random demand, in: Multilevel production/inventory control systems: Theory and practice, L.B. Schwarz (editor), North-Holland, Amsterdam.
Evans, R.V. (1968): Sales and restocking policies in a single item inventory system, in: Management Science, 14:463–472.
Greenberg, W. (1991): Competition, Regulation and Rationing in Health Care. (Health Administration Press) Ann Arbor, Michigan.
Ha, A.Y. (1997a): Stock-rationing policy for a make-to-stock production system with two priority classes and backordering, in: Naval Research Logistics, 44:457–472.
Ha, A.Y. (1997b): Inventory rationing in a make-to-stock production system with several demand classes and lost sales, in: Management Science, 43:1093–1103.
Held, P.J. (1988): Access to kidney transplantation, in: Archives of Internal Medicine, 148:2594–2600.
Henaux, C./ Semal, P. (1998): Delivery service: Expectation, performances and costs for a distributor, in: Advances in Distribution Logistics, B. Fleischmann, Jo A.E.E. van Nunen, M. Grazia Speranza, and P. Stähly (eds.), Springer-Verlag, Berlin.
Kaplan, A. (1969): Stock rationing, in: Management Science, 15:260–267.
Kleijn, M.J./ Dekker, R. (1998): Using break quantities for tactical optimisation in multi-stage distribution systems, in: Advances in Distribution Logistics, B. Fleischmann, Jo A.E.E. van Nunen, M. Grazia Speranza, and P. Stähly (eds.), Springer-Verlag, Berlin.
Lee, H.L./ Nahmias, S. (1993): Single-product, single-location models, in: Handbooks in OR & MS, vol. 4, S.C. Graves, A.H.G. Rinnooy Kan, and P. Zipkin (eds), Elsevier Science Publishers, North-Holland.
Melchiors, P./ Dekker, R./ Kleijn, M.J. (1998): Inventory rationing in an (s, Q) inventory model with lost sales and two demand classes. Report EI9837/A, Econometric Institute, Erasmus University Rotterdam, The Netherlands.
Moon, L/ Kang, S. (1998): Rationing policies for some inventory systems, in: Journal of the Operational Research Society, 49:509–518.
Nahmias, S./ Demmy, S. (1981): Operating characteristics of an inventory system with rationing, in: Management Science, 27:1236–1245.
Nguyen, V. (1991): On the optimality of trunk reservation in overflow processes, in: Probability in the Engineering and Informational Sciences, 5:369–390.
Porteus, E.L. (1990): Stochastic inventory theory, in: Handbooks in OR & MS, vol. 2, D.P. Heyman and M.J. Sobel (eds), Elsevier Science Publishers, North-Holland.
Robinson, L.W. (1994): Optimal and approximate control policies for airline booking with sequential nonmonotonic fare classes, in: Operations Research, 43:252–263.
Silver, E.A./ Pyke, D.F./ Peterson, R. (1998): Inventory Management and Production Planning and Scheduling, 3rd edition. (John Wiley & Sons), New York.
Teunter, R.H./ Klein Haneveld, W.K. (1996): Reserving spare parts for critical demand. Research Report, Graduate School/Research Institute System, Organisations and Management (SOM), University of Groningen, The Netherlands.
Topkis, D.M. (1968): Optimal ordering and rationing policies in a nonstationary dynamic inventory model with n demand classes, in: Management Science, 15:160–176.
Veinott, A.F. Jr. (1965): Optimal policy in a dynamic, single product, nonstationary inventory model with several demand classes, in: Operations Research, 13:761–778.
Veinott, A.F. Jr. (1966): The status of mathematical inventory theory, in: Management Science, 12:745–777.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1999 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Kleijn, M.J., Dekker, R. (1999). An Overview of Inventory Systems with Several Demand Classes. In: Speranza, M.G., Stähly, P. (eds) New Trends in Distribution Logistics. Lecture Notes in Economics and Mathematical Systems, vol 480. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58568-5_13
Download citation
DOI: https://doi.org/10.1007/978-3-642-58568-5_13
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-66617-2
Online ISBN: 978-3-642-58568-5
eBook Packages: Springer Book Archive