Optimal inventory control policies of a two-stage push–pull production inventory system with lost sales under stochastic production, transportation, and external demand

George Varlas (), Michael Vidalis (), Stelios Koukoumialos () and Alexandros Diamantidis ()
Additional contact information
George Varlas: University of the Aegean
Michael Vidalis: University of the Aegean
Stelios Koukoumialos: University of Thessaly
Alexandros Diamantidis: Aristotle University of Thessaloniki

TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, 2021, vol. 29, issue 3, No 9, 799-832

Abstract: Abstract An analytical model based on Markov processes is proposed for the analysis of a linear, horizontally integrated, two stages, push–pull inventory system. Uncertainty about both supply and demand is taken into consideration. Exponentially distributed lead times, compound Poisson external demand and lost sales are assumed. An algorithm that creates the infinitesimal generator matrix of the system is developed and an exact numerical solution of the system performance measures is also provided. The proposed model can be either used to evaluate what if scenarios exploring the behavior of the system or to optimize performance measures of the considered system. As an example, the model is used to analyze and get insights of the behavior of a supply–demand balanced system.

Keywords: Push–pull systems; Markov process; Supply chain management; Optimization; Performance evaluation; 60J10; 90B06 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11750-021-00595-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:topjnl:v:29:y:2021:i:3:d:10.1007_s11750-021-00595-0

Ordering information: This journal article can be ordered from
http://link.springer.de/orders.htm

DOI: 10.1007/s11750-021-00595-0

Access Statistics for this article

TOP: An Official Journal of the Spanish Society of Statistics and Operations Research is currently edited by Juan José Salazar González and Gustavo Bergantiños

More articles in TOP: An Official Journal of the Spanish Society of Statistics and Operations Research from Springer, Sociedad de Estadística e Investigación Operativa
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().