Open AccessAnalysis of make-to-stock queues with general processing times and start-up and lost sales costs
Author(s) -
Sinem Dedeoğlu Özkan,
Önder Bulut
Publication year - 2021
Publication title -
an international journal of optimization and control: theories and applications/e-an international journal of optimization and control: theories and applications
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.287
H-Index - 6
eISSN - 2146-5703
pISSN - 2146-0957
DOI - 10.11121/ijocta.2022.1034
Subject(s) - independent and identically distributed random variables , queue , stock (firearms) , poisson distribution , inventory control , computer science , poisson process , production control , production (economics) , operations research , mathematical optimization , econometrics , random variable , mathematics , economics , statistics , microeconomics , engineering , mechanical engineering , programming language
We consider a make-to-stock environment with a single production unit that corresponds to a single machine or a line. Production and hence inventory are controlled by the two-critical-number policy. Production times are independent and identically distributed general random variables and demands are generated according to a stationary Poisson process. We model this production-inventory system as an M/G/1 make-to-stock queue. The main contribution of the study is to extend the control of make-to-stock literature by considering general production times, lost sales and fixed production costs at the same time. We characterize the long-run behaviour of the system and also propose a simple but very effective approximation to calculate the control parameters of the two-critical-number policy. An extensive numerical study exhibits the effects of the production time distribution and the system parameters on the policy control levels and average system cost.