A NOTE ON THE OPTIMAL DIVISION OF A CONTAINER INTO TWO COMPARTMENTS

SUMMARY The paper is concerned with a special case of the silo problem, namely when it is sought to divide optimally a container into two compartments used for storing two commodities separately. The two compartments are filled to capacity at the beginning of each period and quantities of the two commodities are withdrawn during the period according to two independent demand distributions. There are no storage costs, but penalties are incurred in case of runouts. A solution to the problem is given and the sensitivity of the model is discussed.