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Tandem Queues with Planned Inventories

Author

Listed:
  • Yong-Joo Lee

    (Columbia University, New York, New York)

  • Paul Zipkin

    (Columbia University, New York, New York)

Abstract

This paper explores a natural generalization of the classic tandem-queue model, designed specifically to represent make- to-stock production processes. In such systems, intermediate and finished goods can be produced and stored in advance of demand. We consider the simplest version of the model, where demand is a Poisson process, and the unit production times are exponentially distributed. We propose and test a tractable approximation scheme. The approximation appears to be quite accurate.

Suggested Citation

  • Yong-Joo Lee & Paul Zipkin, 1992. "Tandem Queues with Planned Inventories," Operations Research, INFORMS, vol. 40(5), pages 936-947, October.
    • Handle: RePEc:inm:oropre:v:40:y:1992:i:5:p:936-947
    DOI: 10.1287/opre.40.5.936
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