Cataloged from PDF version of article.Rationing is an inventory policy that allows prioritization of different demand
classes. In this thesis, we analyze the stock rationing policies for continuous
review systems. We clarify some of the ambiguities present in the current
literature. Then, we propose a new method for the exact analysis of lot-for-lot
inventory systems with backorders under rationing policy. We show that if
such an inventory system is sampled at multiples of supply leadtime, the state
of the system evolves according to a Markov chain. We provide a recursive
procedure to generate the transition probabilities of the embedded Markov
chain. It is possible to obtain the steady-state probabilities of interest with
desired accuracy by considering a truncated version of the chain. Finally, we
propose a dynamic rationing policy, which makes use of the information on
the status of the outstanding replenishment orders. We conduct a simulation
study to evaluate the performance of the proposed policy.Bulut, ÖnderM.S
