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Full Description
The last decades have seen an increasing diversity of customer expectations and growing competitive pressure for a wide variety of industries. Customer segmentation and subsequent inventory rationing provide a way to cope with those customer demands while maintaining a competitive offer. The general idea resembles the yield management practised in the airline or hotel industries: Demand fulfilment for low priority customers might be refused or delayed in order to reserve stock for more important clients.
This dissertation thesis from Karin Möllering provides a comprehensive introduction to inventory rationing. It gives an overview of the different approaches studied and identifies state-of-the-art rules. In a second step, the book particularly focuses on an easy-to-implement but highly efficient rationing strategy. For this strategy, a mathematical model is developed that allows for optimization under different objectives.
Potential readership includes scholars of inventory control and management science, students interested in these areas as well as practitioners involved in formulating and implementing rationing strategies.
Contents
1 Introduction.- I Foundations of Stochastic Inventory Control.- 2 Basic Inventory Management.- 3 Stochastic Inventory Control.- II Essential Stochastic Processes.- 4 Markov Chains.- 5 Numerical Solution of Markov Chains.- 6 Comparing Stochastic Processes.- III Stochastic Inventory Control with Customer Segmentation.- 7 Introduction to Inventory Rationing.- 8 Modeling Approach.- 9 Prioritization by Penalty Costs.- 10 Prioritization by Service Levels.- 11 Dynamic Rationing Policies.- 12 Conclusion and Critical Review.- Bibliography.
