Load balancing in a network of queueing-inventory systems

We study a supply chain consisting of production-inventory systems at several locations which are coupled by a common supplier. Demand of customers arrives at each production system according to a Poisson process and is lost if the local inventory is depleted ("lost sales"). To satisfy a customer's demand a server at the production system needs raw material from the associated local inventory. The supplier manufactures raw material to replenish the local inventories, which are controlled by a continuous review base stock policy. The routing of items depends on the on-hand inventory at the locations with the aim to obtain "load balancing". We show that the stationary distribution has a product form of the marginal distributions of the production subsystem and the inventory-replenishment subsystem. For the marginal distribution of the production subsystem we derive an explicit solution and for the marginal distribution of the inventory-replenishment subsystem we deduce an explicit solution or a recursive algorithm for some special cases.

MoreLess

Year of publication:	2022
Authors:	Otten, Sonja
Published in:	Annals of Operations Research. - New York, NY : Springer US, ISSN 1572-9338. - Vol. 331.2022, 2, p. 807-837
Publisher:	New York, NY : Springer US
Subject:	Queueing networks \| Inventory control \| Base stock policy \| Product-form steady state

More details

Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.1007/s10479-022-05017-3 [DOI]
Source:	EconStor

Persistent link: https://ebvufind01.dmz1.zbw.eu/10015191622