A Queueing-Inventory System with Repair Center for Defective Items and One-for-One Ordering Policy
Authors
Abstract:
In this paper we consider a system consisting of a supplier with a single processing unit, a repair center, and a retailer with Poisson demand. We assume that the retailer applies one-for-one ordering policy with backorders for his inventory control. The retailer’s orders form a queue in the supplier processing unit. We also assume that a certain fraction of the products produced by the supplier are defective and they must be repaired in the repair center before going to the retailer. Further, we assume that the processing time of each unit at the supplier and the service time of each defective item in the repair center are exponentially distributed random variables with known means. The purpose of this paper is to obtain the optimal value of the inventory position of the retailer which minimizes the total cost of the system. To achieve this purpose we consider two cases, Case (1) the ratio of the arrival rate to service rate, at the supplier and at the repair center are not equal and Case (2) these ratios are equal. For both cases, we first derive the long run probability distribution of the number of outstanding orders of the retailer. Then we obtain the average on hand inventory and backorders of the retailer, and derive the long run unit total cost of the system. We also investigate the convexity of this total system cost function and obtain the optimal value of the inventory position of the retailer and present a numerical example.
similar resources
Queueing Inventory System in a Two-level Supply Chain with One-for-One Ordering Policy
Consider a two-level inventory system consisting of one supplier and one retailer. The retailer faces a Poisson demand with a known rate and applies base stock (one-for-one ordering) policy. That is, his inventory position is set to a pre-determined level, so the demand pattern is transferred exactly to the supplier. The supplier has an inventory system and a service unit with exponentially dis...
full textA Queueing-inventory System with Defective Items and Poisson Demand
Abstract In this paper we consider a system consisting of a retailer, a supplier with a single processing unit, and a repair center. We assume that the retailer faces a Poisson demand, his ordering cost is zero or negligible, and for his inventory control he applies one-for-one ordering policy, that is, as soon as a demand arrives he orders one unit to the supplier. We also assume that when a d...
full text(1, T) policy for a Two-echelon Inventory System with Perishable-on-the-Shelf Items
This paper deals with an i * Corresponding author Email address: nventory system with one central warehouse and a number of identical retailers. We consider perishable-on-the-shelf items; that is, all items have a fixed shelf life and start to age on their arrival at the retailers. Each retailer faces Poisson demand and employs (1, T) inventory policy. Although demand not met at a retai...
full textOne-for-One Period Policy and its Optimal Solution
In this paper we introduce the optimal solution for a simple and yet practical inventory policy with the important characteristic which eliminates the uncertainty in demand for suppliers. In this new policy which is different from the classical inventory policies, the time interval between any two consecutive orders is fixed and the quantity of each order is one. Assuming the fixed ordering cos...
full textAn Integrated Inventory Model with Controllable Lead time and Setup Cost Reduction for Defective and Non-Defective Items
In this paper, the study deals with the lead time and setup reduction problem in the vendor-purchaser integrated inventory model. The cost of capital (i.e., opportunity cost) is one of the key factors in making the inventory and investment decisions. Lead time is an important element in any inventory system. The proposed model is presents an integrated inventory model with controllable lead tim...
full textMy Resources
Journal title
volume 5 issue 4
pages 230- 239
publication date 2012-01-01
By following a journal you will be notified via email when a new issue of this journal is published.
Hosted on Doprax cloud platform doprax.com
copyright © 2015-2023