TY - JOUR

T1 - Separable models for interconnected production-inventory systems

AU - Otten, Sonja

AU - Krenzler, Ruslan

AU - Daduna, Hans

PY - 2020/1/2

Y1 - 2020/1/2

N2 - We investigate a new class of separable systems which exhibit a product-form stationary distribution. These systems consist of parallel production systems (servers) at several locations, each with a local inventory under base stock policy, connected with a common supplier network. 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 production server needs raw material from the associated local inventory. The supplier network is a classical queueing network. We investigate two different lost sales regimes, either based on total inventory or on available inventory. We perform cost analysis to find the optimal base stock levels, which is due to the product-form stationary distribution a separable optimization problem. Finally, we demonstrate that the explicit product forms for both stationary distributions enable us to compare main performance metrics of the systems under the different lost sales admission regimes.

AB - We investigate a new class of separable systems which exhibit a product-form stationary distribution. These systems consist of parallel production systems (servers) at several locations, each with a local inventory under base stock policy, connected with a common supplier network. 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 production server needs raw material from the associated local inventory. The supplier network is a classical queueing network. We investigate two different lost sales regimes, either based on total inventory or on available inventory. We perform cost analysis to find the optimal base stock levels, which is due to the product-form stationary distribution a separable optimization problem. Finally, we demonstrate that the explicit product forms for both stationary distributions enable us to compare main performance metrics of the systems under the different lost sales admission regimes.

KW - Admission control

KW - base stock policy

KW - inventory control

KW - lost sales

KW - Markovian analysis

KW - product-form steady state

KW - queueing networks

KW - separability

KW - supply chain dynamics

KW - Informatics

KW - Business informatics

UR - http://www.scopus.com/inward/record.url?scp=85076908113&partnerID=8YFLogxK

UR - https://doi.org/10.1080/15326349.2019.1692667

U2 - 10.1080/15326349.2019.1692667

DO - 10.1080/15326349.2019.1692667

M3 - Journal articles

AN - SCOPUS:85076908113

VL - 36

SP - 48

EP - 93

JO - Stochastic Models

JF - Stochastic Models

SN - 1532-6349

IS - 1

ER -