We consider a supply chain, which consists of N stocking locations
and one supplier. The locations may be coordinated through
replenishment strategies and lateral transshipments. The supplier
has limited production capacity. Therefore, the total amount of
product supplied to the N locations is limited in each time period.
When total replenishment orders exceed total supply, not all locations
will be able to attain their base stock values. Therefore, different
allocation rules are considered to specify how the supplier
rations its limited capacity among the locations.