On the heuristics for optimizing the rationing levels in the (S-1,S) lost sales inventory model with multiple demand classes


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Abstract

We examine the heuristics proposed by Kranenburg and van Houtum (2007) for finding good rationing policies in the (S,S-1) lost sales inventory model with multiple demand classes. Our main result is that we establish guaranteed optimality for two of these heuristics. As a corollary, we provide an alternative proof for the optimality of rationing policies among the class of all policies.
 
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Daniel Potthoff

 
 

Wilco van den Heuvel

 
 

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