ZLC Seminar: Jianjun Xu

Prof. Jianjun Xu will present the following topic which is a joint work with Prof. Youyi Feng:

"Optimal Rationing Policy for a Backordering Inventory System with Multiple Demand Classes"

Abstract

We study the structure of optimal replenishing and rationing policies for a periodic review inventory system with multiple demand classes. A single product is replenished in each period with a delivery leadtime. The firm manages to allocate the available stock to fulfill the demand of different classes. Unsatisfied demand is backlogged with distinct backordering costs. The structural properties of the optimal value function are revealed to partially characterize the optimal ordering and rationing policy and draw insights into efficient optimal decisions.