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Markovian Analysis of a Push-Pull Merge System with Two Suppliers, An Intermediate Buffer, and Two Retailers

Author

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  • Alexandros Diamantidis

    (Department of Economics, Aristotle University of Thessaloniki Thessaloniki, Greece)

  • Stylianos Koukoumialos

    (Department of Business Administration, Technological Educational Institute of Thessaly, Larissa, Greece)

  • Michael Vidalis

    (Department of Business Administration, University of the Aegean, Chios, Greece)

Abstract

This paper examines a push-pull merge system with two suppliers, two retailers and an intermediate buffer (distribution centre). Two reliable non identical suppliers performing merge operations feed a buffer that is located immediately upstream of two non-identical reliable retailers. External customers arrive to each retailer with non-identical inter-arrival times that are exponentially distributed. The amount ordered from each retailer by a customer is exactly one unit. The material flows between upstream stages (suppliers) is push type, while between downstream stages (retailers) it is driven by continuous review, reorder point/order quantity inventory control policy (s,S). Both suppliers and retailers have exponential service rates. The considered system is modelled as a continuous time Markov process with discrete states. An algorithm that generates the transition matrix for any value of the parameters of the system is developed. Once the transition matrix is known the stationary probabilities can be computed and therefore the performance measures of the model under consideration can be easily evaluated.

Suggested Citation

  • Alexandros Diamantidis & Stylianos Koukoumialos & Michael Vidalis, 2017. "Markovian Analysis of a Push-Pull Merge System with Two Suppliers, An Intermediate Buffer, and Two Retailers," International Journal of Operations Research and Information Systems (IJORIS), IGI Global, vol. 8(2), pages 1-35, April.
    • Handle: RePEc:igg:joris0:v:8:y:2017:i:2:p:1-35
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    Cited by:

    1. Angelos Kourepis & Alexandros Diamantidis & Stylianos Koukoumialos, 2022. "Exact analysis of a push–pull system with multiple non identical retailers, a distribution center and multiple non identical unreliable suppliers with supply disruptions," Operational Research, Springer, vol. 22(5), pages 4801-4827, November.
    2. George Varlas & Michael Vidalis & Stelios Koukoumialos & Alexandros Diamantidis, 2021. "Optimal inventory control policies of a two-stage push–pull production inventory system with lost sales under stochastic production, transportation, and external demand," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 29(3), pages 799-832, October.

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