
Accession Number : AD0633914
Title : OPTIMAL POLICIES FOR STOCKING AND ISSUING INVENTORY WHEN SEVERAL DEMAND CLASSES EXIST,
Descriptive Note : Technical rept.,
Corporate Author : DECISION STUDIES GROUP PALO ALTO CALIF
Personal Author(s) : Topkis,Donald M.
Report Date : 30 APR 1966
Pagination or Media Count : 43
Abstract : This report considers the problem of stocking and issuing an item that has two different uses, one being more important than the other. Under certain mild assumptions, if resupply is periodic and the demands are random then the optical issuing policy turns out to be of the single critical number type. At the end of each of K intervals between resupply points all of the more important demand occuring within the interval should be immediately satisfied. Subsequently the less important demand should be satisfied only to the point that the stock level does not drop below a certain critical level. The critical level depends on the time remaining before resupply. Optimal stocking policies issuing procedures are derived for the single period, arbitrary finite period, and infinite period cases in which demand either can or cannot be backlogged if it is not immediately satisfied. (Author)
Descriptors : (*OPTIMIZATION, *INVENTORY CONTROL), (*INVENTORY ANALYSIS, OPTIMIZATION), INVENTORY CONTROL, DECISION MAKING
Subject Categories : Operations Research
Distribution Statement : APPROVED FOR PUBLIC RELEASE