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Wilfrid Laurier University Leaf
October 27, 2016
Canadian Excellence

Sapna Isotupa


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Sapna Isotupa

Continuous Review (s,Q) Inventory System with Two Types of Customers

K.P. Sapna Isotupa

published: 2006 | Research publication | Refereed Journals - ODS

In this article we analyze a lost sales (s,Q) inventory system with two types of customers and exponentially distributed lead times.  Demands from each type of customer arrive according to two independent Poisson processes.  A comparative study of the average cost rate for the cases in which there is differentiation between service to customers, based on the type of customer, and the case in which there is no differentiation between customers, is carried out by using the concepts of rationing.  Analytic conditions under which differentiation between customers yield lower costs are derived.

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revised Apr 8/08

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