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There is now a CONTENT FREEZE for Mercury while we switch to a new platform. It began on Friday, March 10 at 6pm and will end on Wednesday, March 15 at noon. No new content can be created during this time, but all material in the system as of the beginning of the freeze will be migrated to the new platform, including users and groups. Functionally the new site is identical to the old one. webteam@gatech.edu
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We analyze market segmentation in manufacturing where customers are differentiated according to fulfillment priority and willingness to wait. We allow some orders to be promised immediately and satisfied in the next period (B), and inventory may be reserved to satisfy future profitable demand (R). We show a modified order-up-to policy (S, R, B) is optimal for various rationing strategies where S is the base stock level and values are limited by capacity; profit improvement can be significant.
