Abstract
In this paper we analyze a single server supply chain model in which stocks are kept in both the manufacturer warehouse (production centre) and the retail shop (distribution centre). Arrival of customers to the retail shop form a Poisson process and their service time are exponentially distributed. The maximum stock of the distribution centre is limited to s + Q(=S). When the inventory level depletes to s due to services, it demands Q units at a time from the production centre. The lead time follows an exponential distribution. If the production centre has the required stock on-hand, the items are supplied. Supply of items from the production centre to the distribution centre is done only as a packet of Q units at a time. So if a packet of size Q is not available the distribution centre has to wait till Q units accumulates in the production centre. The production inventory system adopts a (r Q, K Q) policy where the processing of inventory requires a positive random amount of time. Production time for unit item is exponentially distributed. Also we assume that no customer joins the queue when the inventory level in the distribution centre is zero. This assumption leads to an explicit product form solution for the steady state probability vector.
Similar content being viewed by others
References
Altiok, T.: (R, r) production/inventory systems. INFORMS Oper. Res. 37(2), 266–276 (1989)
Krenzler, R., Daduna, H.: Loss systems in a random environment steady-state analysis, Queueing Syst (2014)
Krenzler, R., Daduna, H.: Loss systems in a random environment-embedded Markov chains analysis. http://preprint.math.unihamburg.de/public/papers/prst/prst2013-02.pdf (2013)
Krishnamoorthy, A., Lakshmy, B., Manikandan, R.: A survey on Inventory models with positive service time. OPSEARCH 48(2), 153–169 (2011)
Krishnamoorthy, A., Viswanath, C. N.: Production inventory with service time and vacation to the server. IMA J. Manag. Math. 22(1), 33–45 (2011)
Krishnamoorthy, A., Viswanath, N. C.: Stochastic decomposition in production inventory with service time, EJOR. doi:10.1016/j.ejor.2013.01.041 (2013)
Neuts, M.F.: Matrix-geometric solutions in stochastic models: an algorithmic approach. The Johns Hopkins University Press, Baltimore [1994 version is Dover Edition] (1981)
Otten, S., Krenzler, R., Daduna, H.: Integrated models for production-inventory systems. http://preprint.math.uni-hamburg.de/public/papers/prst/prst2014-01.pdf (2014)
S.M: Ross. John Wiley & Sons. Inc., Stochastic Processes. I I nd edition (1996)
Saffari, M., Asmussen, S., Haji, R.: The M/M/1 queue with inventory, lost sale and general lead times. Queueing Syst. 75, 65–77 (2013)
Schwarz, M., Sauer, C., Daduna, H., Kulik, R., Szekli, R.: M/M/1 queueing systems with inventory. Queueing Syst. 54, 55–78 (2006)
Schwarz, M., Wichelhaus, C., Daduna, H.: Product form models for queueing networks with an inventory. Stoch. Model. 23(4), 627–663 (2007)
Sigman, K., Simchi-Levi, D.: Light traffic heuristic for an M/G/1 queue with limited inventory. Annals of OR 40, 371–380 (1992)
Stefan, M.: Multiple-supplier inventory models in supply chain management: A review. Int. J. Prod. Econ. 8182, 265–279 (2003)
Tempelmeier, H.: Bestands management in supply chains.Books on Demand (2005)
Acknowledgments
The authors thank the referees for their critical comments which helped in improving the presentation of the paper.
Author information
Authors and Affiliations
Corresponding author
Additional information
Research supported by Kerala State Council for Science, Technology & Environment (No.001/KESS/2013/CSTE)
Rights and permissions
About this article
Cite this article
Krishnamoorthy, A., Shajin, D. & Lakshmy, B. Product form solution for some queueing-inventory supply chain problem. OPSEARCH 53, 85–102 (2016). https://doi.org/10.1007/s12597-015-0215-8
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s12597-015-0215-8