IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v129y2011i1p225-231.html
   My bibliography  Save this article

A queueing-inventory system with two classes of customers

Author

Listed:
  • Zhao, Ning
  • Lian, Zhaotong

Abstract

We consider a queueing-inventory system with two classes of customers. Customers arrive at a service facility according to Poisson processes. Service times follow exponential distributions. Each service uses one item in the attached inventory supplied by an outside supplier with exponentially distributed lead time. We find a priority service rule to minimize the long-run expected waiting cost by dynamic programming method and obtain the necessary and sufficient condition for the priority queueing-inventory system being stable. Formulating the model as a level-dependent quasi-birth-and-death (QBD) process, we can compute the steady state probability distribution by Bright-Taylor algorithm. Useful analytical properties for the cost function are identified and extensive computations are conducted to examine the impact of different parameters to the system performance measures.

Suggested Citation

  • Zhao, Ning & Lian, Zhaotong, 2011. "A queueing-inventory system with two classes of customers," International Journal of Production Economics, Elsevier, vol. 129(1), pages 225-231, January.
    • Handle: RePEc:eee:proeco:v:129:y:2011:i:1:p:225-231
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(10)00404-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Oded Berman & Eungab Kim, 2004. "Dynamic inventory strategies for profit maximization in a service facility with stochastic service, demand and lead time," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 60(3), pages 497-521, December.
    2. Melchiors, Philip, 2003. "Restricted time-remembering policies for the inventory rationing problem," International Journal of Production Economics, Elsevier, vol. 81(1), pages 461-468, January.
    3. He, Q. -M. & Jewkes, E. M. & Buzacott, J., 2002. "Optimal and near-optimal inventory control policies for a make-to-order inventory-production system," European Journal of Operational Research, Elsevier, vol. 141(1), pages 113-132, August.
    4. Teunter, Ruud H. & Klein Haneveld, Willem K., 2008. "Dynamic inventory rationing strategies for inventory systems with two demand classes, Poisson demand and backordering," European Journal of Operational Research, Elsevier, vol. 190(1), pages 156-178, October.
    5. Teng, Jinn-Tsair, 2009. "Optimal ordering policies for a retailer who offers distinct trade credits to its good and bad credit customers," International Journal of Production Economics, Elsevier, vol. 119(2), pages 415-423, June.
    6. Oded Berman & Eungab Kim, 2001. "Dynamic order replenishment policy in internet-based supply chains," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 53(3), pages 371-390, July.
    7. Maike Schwarz & Hans Daduna, 2006. "Queueing systems with inventory management with random lead times and with backordering," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 64(3), pages 383-414, December.
    8. Steven Nahmias & W. Steven Demmy, 1981. "Operating Characteristics of an Inventory System with Rationing," Management Science, INFORMS, vol. 27(11), pages 1236-1245, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sha, Yue & Zhang, Junlong & Cao, Hui, 2021. "Multistage stochastic programming approach for joint optimization of job scheduling and material ordering under endogenous uncertainties," European Journal of Operational Research, Elsevier, vol. 290(3), pages 886-900.
    2. Youseef Alotaibi, 2016. "Business process modelling challenges and solutions: a literature review," Journal of Intelligent Manufacturing, Springer, vol. 27(4), pages 701-723, August.
    3. Hanukov, Gabi & Avinadav, Tal & Chernonog, Tatyana & Spiegel, Uriel & Yechiali, Uri, 2018. "Improving efficiency in service systems by performing and storing “preliminary services”," International Journal of Production Economics, Elsevier, vol. 197(C), pages 174-185.
    4. Manafzadeh Dizbin, Nima & Tan, Barış, 2020. "Optimal control of production-inventory systems with correlated demand inter-arrival and processing times," International Journal of Production Economics, Elsevier, vol. 228(C).
    5. Hanukov, Gabi, 2022. "A service system where junior servers approach a senior server on behalf of customers," International Journal of Production Economics, Elsevier, vol. 244(C).
    6. K. Jeganathan & J. Kathiresan & N. Anbazhagan, 2016. "A retrial inventory system with priority customers and second optional service," OPSEARCH, Springer;Operational Research Society of India, vol. 53(4), pages 808-834, December.
    7. Hanukov, Gabi & Avinadav, Tal & Chernonog, Tatyana & Yechiali, Uri, 2019. "Performance improvement of a service system via stocking perishable preliminary services," European Journal of Operational Research, Elsevier, vol. 274(3), pages 1000-1011.
    8. A. Krishnamoorthy & R. Manikandan & B. Lakshmy, 2015. "A revisit to queueing-inventory system with positive service time," Annals of Operations Research, Springer, vol. 233(1), pages 221-236, October.
    9. Thulaseedharan Salini Sinu Lal & Varghese Chaukayil Joshua & Vladimir Vishnevsky & Dmitry Kozyrev & Achyutha Krishnamoorthy, 2022. "A Multi-Type Queueing Inventory System—A Model for Selection and Allocation of Spectra," Mathematics, MDPI, vol. 10(5), pages 1-11, February.
    10. Umay Uzunoglu Kocer & Bahar Yalcin, 2020. "Continuous review (s, Q) inventory system with random lifetime and two demand classes," OPSEARCH, Springer;Operational Research Society of India, vol. 57(1), pages 104-118, March.
    11. Sina Nayeri & Mahdieh Tavakoli & Mehrab Tanhaeean & Fariborz Jolai, 2022. "A robust fuzzy stochastic model for the responsive-resilient inventory-location problem: comparison of metaheuristic algorithms," Annals of Operations Research, Springer, vol. 315(2), pages 1895-1935, August.
    12. Baek, Jung Woo & Bae, Yun Han, 2022. "A queuing-inventory model for manufacturing systems with fluid-type inventory," Omega, Elsevier, vol. 111(C).
    13. Kangzhou Wang & Shouchang Chen & Zhibin Jiang & Weihua Zhou & Na Geng, 2021. "Capacity Allocation of an Integrated Production and Service System," Production and Operations Management, Production and Operations Management Society, vol. 30(8), pages 2765-2781, August.
    14. Fathi, Mahdi & Khakifirooz, Marzieh & Diabat, Ali & Chen, Huangen, 2021. "An integrated queuing-stochastic optimization hybrid Genetic Algorithm for a location-inventory supply chain network," International Journal of Production Economics, Elsevier, vol. 237(C).
    15. Xin Li & Guanlai Zhu, 2023. "Green Supply Chain Coordination Considering Carbon Emissions and Product Green Level Dependent Demand," Mathematics, MDPI, vol. 11(10), pages 1-23, May.
    16. Jung Woo Baek, 2024. "On the Control Policy of a Queuing–Inventory System with Variable Inventory Replenishment Speed," Mathematics, MDPI, vol. 12(2), pages 1-19, January.
    17. Güler, M. Güray & Bilgiç, Taner & Güllü, Refik, 2014. "Joint inventory and pricing decisions when customers are delay sensitive," International Journal of Production Economics, Elsevier, vol. 157(C), pages 302-312.
    18. Stratos Ioannidis & Alexandros S. Xanthopoulos & Ioannis Sarantis & Dimitrios E. Koulouriotis, 2021. "Joint production, inventory rationing, and order admission control of a stochastic manufacturing system with setups," Operational Research, Springer, vol. 21(2), pages 827-855, June.
    19. Jalili Marand, Ata & Li, Hongyan & Thorstenson, Anders, 2019. "Joint inventory control and pricing in a service-inventory system," International Journal of Production Economics, Elsevier, vol. 209(C), pages 78-91.
    20. Hanukov, Gabi & Avinadav, Tal & Chernonog, Tatyana & Yechiali, Uri, 2020. "A service system with perishable products where customers are either fastidious or strategic," International Journal of Production Economics, Elsevier, vol. 228(C).
    21. Khamis A. K. ALMaqbali & Varghese C. Joshua & Achyutha Krishnamoorthy, 2023. "Multi-Class, Multi-Server Queueing Inventory System with Batch Service," Mathematics, MDPI, vol. 11(4), pages 1-29, February.
    22. Liu, Mingwu & Feng, Mengying & Wong, Chee Yew, 2014. "Flexible service policies for a Markov inventory system with two demand classes," International Journal of Production Economics, Elsevier, vol. 151(C), pages 180-185.
    23. Fong-Fan Wang & Amita Bhagat & Tsan-Ming Chang, 2017. "Analysis of priority multi-server retrial queueing inventory systems with MAP arrivals and exponential services," OPSEARCH, Springer;Operational Research Society of India, vol. 54(1), pages 44-66, March.
    24. Serife Ozkar & Umay Uzunoglu Kocer, 2021. "Two-commodity queueing-inventory system with two classes of customers," OPSEARCH, Springer;Operational Research Society of India, vol. 58(1), pages 234-256, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alfieri, Arianna & Pastore, Erica & Zotteri, Giulio, 2017. "Dynamic inventory rationing: How to allocate stock according to managerial priorities. An empirical study," International Journal of Production Economics, Elsevier, vol. 189(C), pages 14-29.
    2. Jalili Marand, Ata & Li, Hongyan & Thorstenson, Anders, 2019. "Joint inventory control and pricing in a service-inventory system," International Journal of Production Economics, Elsevier, vol. 209(C), pages 78-91.
    3. Song, Dong-Ping & Dong, Jing-Xin & Xu, Jingjing, 2014. "Integrated inventory management and supplier base reduction in a supply chain with multiple uncertainties," European Journal of Operational Research, Elsevier, vol. 232(3), pages 522-536.
    4. Liu, Shudong & Song, Miao & Tan, Kok Choon & Zhang, Changyong, 2015. "Multi-class dynamic inventory rationing with stochastic demands and backordering," European Journal of Operational Research, Elsevier, vol. 244(1), pages 153-163.
    5. Samii, Amir-Behzad, 2016. "Impact of nested inventory allocation policies in a newsvendor setting," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 247-256.
    6. Quan-Lin Li & Yi-Meng Li & Jing-Yu Ma & Heng-Li Liu, 2023. "A complete algebraic solution to the optimal dynamic rationing policy in the stock-rationing queue with two demand classes," Journal of Combinatorial Optimization, Springer, vol. 45(3), pages 1-54, April.
    7. Wang, Daqin & Tang, Ou & Zhang, Lihua, 2015. "A note on the rationing policies of multiple demand classes with lost sales," International Journal of Production Economics, Elsevier, vol. 165(C), pages 145-154.
    8. FadIloglu, Mehmet Murat & Bulut, Önder, 2010. "A dynamic rationing policy for continuous-review inventory systems," European Journal of Operational Research, Elsevier, vol. 202(3), pages 675-685, May.
    9. Jeganathan, K. & Abdul Reiyas, M. & Prasanna Lakshmi, K. & Saravanan, S., 2019. "Two server Markovian inventory systems with server interruptions: Heterogeneous vs. homogeneous servers," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 155(C), pages 177-200.
    10. Mayorga, Maria E. & Ahn, Hyun-Soo, 2011. "Joint management of capacity and inventory in make-to-stock production systems with multi-class demand," European Journal of Operational Research, Elsevier, vol. 212(2), pages 312-324, July.
    11. P. Escalona & F. Ordóñez & I. Kauak, 2017. "Critical level rationing in inventory systems with continuously distributed demand," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(1), pages 273-301, January.
    12. Bing Lin & Shaoxiang Chen & Yi Feng & Jianjun Xu, 2018. "The Joint Stock and Capacity Rationings of a Make-To-Stock System with Flexible Demand," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(01), pages 1-27, February.
    13. Wei Xu & Dong-Ping Song, 2022. "Integrated optimisation for production capacity, raw material ordering and production planning under time and quantity uncertainties based on two case studies," Operational Research, Springer, vol. 22(3), pages 2343-2371, July.
    14. Jung Woo Baek, 2024. "On the Control Policy of a Queuing–Inventory System with Variable Inventory Replenishment Speed," Mathematics, MDPI, vol. 12(2), pages 1-19, January.
    15. Chen-Ritzo, Ching-Hua & Ervolina, Tom & Harrison, Terry P. & Gupta, Barun, 2011. "Component rationing for available-to-promise scheduling in configure-to-order systems," European Journal of Operational Research, Elsevier, vol. 211(1), pages 57-65, May.
    16. ElHafsi, Mohsen & Fang, Jianxin & Hamouda, Essia, 2021. "Optimal production and inventory control of multi-class mixed backorder and lost sales demand class models," European Journal of Operational Research, Elsevier, vol. 291(1), pages 147-161.
    17. Maike Schwarz & Hans Daduna, 2006. "Queueing systems with inventory management with random lead times and with backordering," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 64(3), pages 383-414, December.
    18. Du, Bisheng & Larsen, Christian, 2017. "Reservation policies of advance orders in the presence of multiple demand classes," European Journal of Operational Research, Elsevier, vol. 256(2), pages 430-438.
    19. Wang, Daqin & Tang, Ou, 2014. "Dynamic inventory rationing with mixed backorders and lost sales," International Journal of Production Economics, Elsevier, vol. 149(C), pages 56-67.
    20. Zümbül Atan & Lawrence V. Snyder & George R. Wilson, 2018. "Transshipment policies for systems with multiple retailers and two demand classes," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(1), pages 159-186, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:129:y:2011:i:1:p:225-231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.