Article: Stock rationing in an M/[E.sub.r]/1 multi-class make-to-stock queue with backorders.(Technical report)

1. Introduction

A stock and capacity allocation problem occurs when a common stock and the production capacity of a supplier must be shared among different markets/customers. Such problems arise in a number of supply chain settings. For instance, delayed product differentiation often results in maintaining a stock of generic components for multiple end-products (De Vericourt et al., 2002). Spare parts inventory management, as in Deshpande et al. (2003) for instance, is another situation where inventory allocation is critical. The design of supply contracts in the settings with different retailers can also entail a stock allocation problem at the supplier (Cachon ...

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