The paper studies aspects of advance demand information and heterogeneous demand in a mathematical model of an inventory system. The concept advance demand information is that customers ahead in time of actual demand place their orders. The concept heterogeneous demand refers to that there are different customer classes with distinct demand behaviour. It is assumed that the inventory system is operated by a base stock policy and there two customer classes that must be served from the inventory. One customer class, Class 1, do not provide any advance demand information at all, while the other, Class 2 does. There are given mathematical expressions of the service measure order fill rate offered to each class. The aim is to do an investigation of the magnitude of discrepancy in service between these two customer classes.
base stock policy; advance demand information; differentiated service
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The 20th International Conference on Production Research, 2009