Queueing systems with inventory management with random lead times and with backordering

Maike Schwarz () and Hans Daduna ()

Mathematical Methods of Operations Research, 2006, vol. 64, issue 3, 383-414

Abstract: We investigate M/M/1/∞-systems with inventory management, continuous review, exponentially distributed lead times and backordering. We compute performance measures and derive optimality conditions under different order policies. For performance measures, which are not explicitly at hand, we present an approximation scheme for all possible parameter combinations. Although we cannot completely determine analytically the steady state probabilities for the system we are able to derive functional relations between interesting probabilities and show surprising insensitivity properties of several performance measures. For the approximations we develop an algorithm adapted to the system structure which suggests easy adaption to other systems. Copyright Springer-Verlag 2006

Keywords: Queueing systems; Queue lengths; Performance analysis; Inventory systems; Inventory policy; Service level; Inventory level; 60K25; 90B22; 90B05 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (14)

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DOI: 10.1007/s00186-006-0085-1

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