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An (s, Q) inventory system with two classes of customers

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  • K.P. Sapna Isotupa

Abstract

In this paper, we study a lost-sales (s, Q) inventory system with two classes of customers – high priority and low priority. We compare two policies for supplying the two types of customers with their requirements. In one policy, both customers are treated alike. In the other policy, when inventory levels are below a threshold level, only the demands from high-priority (HP) customers are met, whereas the low-priority (LP) customers are sent away unsatisfied. Under certain conditions, we note the remarkable fact that for a lost-sales (s, Q) inventory system with two classes of customers, differentiating between customers and hoarding items for the HP customer yield lower costs for the supplier and better service levels for both types of customers.

Suggested Citation

  • K.P. Sapna Isotupa, 2011. "An (s, Q) inventory system with two classes of customers," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 12(1), pages 1-19.
    • Handle: RePEc:ids:ijores:v:12:y:2011:i:1:p:1-19
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    Cited by:

    1. Serife Ozkar & Umay Uzunoglu Kocer, 2021. "Two-commodity queueing-inventory system with two classes of customers," OPSEARCH, Springer;Operational Research Society of India, vol. 58(1), pages 234-256, March.

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