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Journals / An International Journal of Optimization and Control: Theories & Applications (IJOCTA) / 2022 / Cilt: 12 - Sayı: 1

Analysis of make-to-stock queues with general processing times and start- up and lost sales costs

Önder Bulut
Sinem Özkan
Pages
8–19
Publication Date
2022-10-11
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

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.

📌 3 Key Takeaways

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Objective & Hypothesis:We consider a make-to-stock environment with a single production unit that corresponds to a single machine or a line.
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Key Findings & Data:Production times are independent and identically distributed general random variables and demands are generated according to a stationary Poisson process.
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Conclusion & Impact: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.
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

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.

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Cite This Article

Bulut, Ö., Özkan, S. (2022). Analysis of make-to-stock queues with general processing times and start- up and lost sales costs. An International Journal of Optimization and Control: Theories & Applications (IJOCTA), Cilt: 12 - Sayı: 1, 8–19. https://ajindex.com/articles/440522

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References (1)

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