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The impact of production time variability on make-to-stock queue performance

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  • Sanajian, Nima
  • BalcIog[small tilde]lu, BarIs

Abstract

In this paper, we exploit the distributional Little's law to obtain the steady-state distribution of the number of customers in a GI/G/1 make-to-stock queueing system. Non-exponential service times in make-to-stock queue modeling are usually avoided or at best, considered in approximations due to difficulties in developing an exact method. By providing a numerical solution of the GI/G/1 make-to-stock queue, we observed the impact of production time variability on optimal inventory control policies. The numerical results prove the degree of errors in the results if an exponential service time distribution were assumed instead of the actual distribution.

Suggested Citation

  • Sanajian, Nima & BalcIog[small tilde]lu, BarIs, 2009. "The impact of production time variability on make-to-stock queue performance," European Journal of Operational Research, Elsevier, vol. 194(3), pages 847-855, May.
    • Handle: RePEc:eee:ejores:v:194:y:2009:i:3:p:847-855
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Gökçe Kahveciog̃lu & Barış Balcıog̃lu, 2016. "Coping with production time variability via dynamic lead-time quotation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(4), pages 877-898, October.
    2. Toktas-Palut, Peral & Ülengin, Füsun, 2011. "Coordination in a two-stage capacitated supply chain with multiple suppliers," European Journal of Operational Research, Elsevier, vol. 212(1), pages 43-53, July.
    3. Hossein Abouee-Mehrizi & Barış Balcıoğlu & Opher Baron, 2012. "Strategies for a Centralized Single Product Multiclass M/G/ 1 Make-to-Stock Queue," Operations Research, INFORMS, vol. 60(4), pages 803-812, August.
    4. Shi, Xiutian & Shen, Houcai & Wu, Ting & Cheng, T.C.E., 2014. "Production planning and pricing policy in a make-to-stock system with uncertain demand subject to machine breakdowns," European Journal of Operational Research, Elsevier, vol. 238(1), pages 122-129.
    5. Hayya, Jack C. & Harrison, Terry P. & He, X. James, 2011. "The impact of stochastic lead time reduction on inventory cost under order crossover," European Journal of Operational Research, Elsevier, vol. 211(2), pages 274-281, June.
    6. Balcıõglu, Barış & Varol, Yãgız, 2022. "Fair and profitable: How pricing and lead-time quotation policies can help," European Journal of Operational Research, Elsevier, vol. 299(3), pages 977-986.
    7. N Sanajian & H Abouee-Mehrizi & B Balcıog̃lu, 2010. "Scheduling policies in the M/G/1 make-to-stock queue," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(1), pages 115-123, January.

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