Measurement and optimization of responsiveness in supply chain networks with queueing structures

Sin-Hoon Hum, Mahmut Parlar and Yun Zhou

European Journal of Operational Research, 2018, vol. 264, issue 1, 106-118

Abstract: In this paper we consider supply chains with multiple stages of serial or network structure. The supply chains are endogenous in the sense that they involve queues because each order’s lead-time is dependent on the orders already in the system. We define supply chain responsiveness as the probability of fulfilling customer orders within a promised lead-time and study the problems of measuring and optimizing supply chain responsiveness using queueing network models. We first consider a single-server multi-stage serial supply chain and find a closed form expression for the fulfilment time distribution. For the multi-server multi-stage problem, the closed form evaluation of the fulfilment time distribution becomes intractable due to the dependency of the lead-times in different stages. We circumvent this difficulty by proposing a novel FCFS discipline which enables a closed-form analysis. For the multi-server multi-stage Jackson-type supply chain network, to enable analysis, we convert the system into an equivalent single server single stage system with state-dependent rates. For each case, we present detailed numerical examples for both measurement and the optimization of supply chain responsiveness.

Keywords: Supply chain management; Responsiveness; Queueing (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:264:y:2018:i:1:p:106-118

DOI: 10.1016/j.ejor.2017.05.009

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