Processing Networks with Inventories: Sequential Refinement Systems

Yong-Joo Lee · Paul H. Zipkin

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Advanced Queuing Theory Analysis Supply Chain and Inventory Management Scheduling and Optimization Algorithms

Abstract

This paper investigates a model representing a make-to-stock production system, where intermediate and finished goods are produced and stored in advance of demand. In other respects the system operates much like a network of queues. There are several nodes and items. Each item is produced at one of the nodes using another item as input. Customer demands for the items and the unit-processing times at the nodes obey simple Markovian laws. We develop a tractable approximation scheme for estimating performance and test it through computer simulation. Numerical results show that the approximation is quite accurate. The model and the approximation express the effects of different degrees of component commonality.

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References

1964Analysis of Inventory Systems.1984Matrix-Geometric Solutions to Stochastic Models 1990An Introduction to Queueing Networks 1992Dynamic Scheduling of a Multiclass Make-to-Stock Queue 1991Evaluation of One-for-One Replenishment Policies for Multiechelon Inventory Systems 1992Tandem Queues with Planned Inventories 1992Service Level in Multistage MRP and Base Stock Controlled Production Systems 1992Effect of increasing component commonality on service level and holding cost

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2009The impact of delayed differentiation in make-to-order environments 2007Combining multi-class queueing networks and inventory models for performance analysis of multi-product manufacturing logistics chains 2008Cost-effective inventory control in a value-added manufacturing system

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