Stock Rationing

Alan Kaplan
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Alan Kaplan: Inventory Research Office US Army Lugistis Management Center

Management Science, 1969, vol. 15, issue 5, 260-267

Abstract: A supplier may distinguish between the demands be receives for an item, attaching greater importance to satisfying some categories of demand than others. This paper discusses use of reserve levels, i. e, stock levels at which to stop issuing in response to lower priority demand. An algorithm which calculates optimum reserve levels is developed. Its effectiveness is compared to use of unsophisticated policies.

Date: 1969
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:15:y:1969:i:5:p:260-267

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