TY - JOUR
T1 - Optimal myopic allocation of a product with fixed lifetime
AU - Prastacos, Gregory P.
PY - 1978/9
Y1 - 1978/9
N2 - Allocation policies of a perishable product from a regional centre to n locations in the region are analysed. Optimal myopic rules are derived for two general classes of policies: rotation policies, where unused product that is not outdated is returned to the centre; and retention policies, where returns to the centre are not possible. Costs are charged for every unit short or outdated. It is shown that the optimal myopic rule minimizes both shortage and outdate costs for one period, it is simple to implement in a realistic environment and is independent of the unit costs. Analytic solutions are given for several demand distributions. Finally, an example of application in blood management is presented.
AB - Allocation policies of a perishable product from a regional centre to n locations in the region are analysed. Optimal myopic rules are derived for two general classes of policies: rotation policies, where unused product that is not outdated is returned to the centre; and retention policies, where returns to the centre are not possible. Costs are charged for every unit short or outdated. It is shown that the optimal myopic rule minimizes both shortage and outdate costs for one period, it is simple to implement in a realistic environment and is independent of the unit costs. Analytic solutions are given for several demand distributions. Finally, an example of application in blood management is presented.
UR - http://www.scopus.com/inward/record.url?scp=0018014005&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0018014005&partnerID=8YFLogxK
U2 - 10.1057/jors.1978.194
DO - 10.1057/jors.1978.194
M3 - Article
AN - SCOPUS:0018014005
SN - 0160-5682
VL - 29
SP - 905
EP - 913
JO - Journal of the Operational Research Society
JF - Journal of the Operational Research Society
IS - 9
ER -