EconPapers    
Economics at your fingertips  
 

A queuing system with inventory and competing suppliers

Mohammad Saffari, Mohsen S. Sajadieh and Farhad Hassanzadeh

European Journal of Industrial Engineering, 2019, vol. 13, issue 3, 420-433

Abstract: A single-server queuing system is considered where service consumes one unit of inventory which is maintained by two suppliers with different price and replenishment lead times. During inventory stockout, new customers refuse to enter the system (lost sales) but the existing ones remain in queue until inventory becomes available again (backlogged demand). We analytically derive the joint distribution of queue length and on-hand inventory in steady state and determine supplier-specific ordering policies that maximise the average system profit. A special case of the system with multiple servers is addressed. A numerical study reveals dynamics of the optimal ordering policy with respect to price and replenishment lead-times. [Received: 15 April 2018; Revised: 21 November 2018; Accepted: 18 December 2018]

Keywords: inventory; competing suppliers; queuing; stationary distribution. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.inderscience.com/link.php?id=100006 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:eujine:v:13:y:2019:i:3:p:420-433

Access Statistics for this article

More articles in European Journal of Industrial Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().

 
Page updated 2021-03-06
Handle: RePEc:ids:eujine:v:13:y:2019:i:3:p:420-433