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Computation of order and volume fill rates for a base stock inventory control system with heterogeneous demand to investigate which customer class gets the best service

Research output: Working paperResearch


  • L 2006 03

    Final published version, 214 KB, PDF document

  • Department of Business Studies
  • CORAL - Centre for Operations Research Applications in Logistics
We consider a base stock inventory control system serving two customer classes whose demands are generated by two independent compound renewal processes. We show how to derive order and volume fill rates of each class. Based on assumptions about first order stochastic dominance we prove when one customer class will get the best service. That theoretical result is validated through a series of numerical experiments which also reveal that it is quite robust.
Original languageEnglish
Place of publicationAarhus
PublisherAarhus School of Business, Department of Business Studies
ISBN (Electronic)8778821193
Publication statusPublished - 2006

    Research areas

  • Base stock policy, service measures, two customer classes, compound renewal processes.

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