Load balancing in a network of queueing-inventory systems

DOI10.1007/S10479-022-05017-3MaRDI QIDQ6148748zbMATH OpenFDO

Authors Sonja Otten

Publication date 8 February 2024

Published in Annals of Operations Research (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://arxiv.org/abs/2204.06600

zbMATH Keywords

base stock policyinventory controlproduct-form steady statequeueing networks

Mathematics Subject Classification ID

Queueing theory (aspects of probability theory) (60K25) Performance evaluation, queueing, and scheduling in the context of computer systems (68M20) Inventory, storage, reservoirs (90B05) Transportation, logistics and supply chain management (90B06) Queues and service in operations research (90B22)

Abstract: We study a supply chain consisting of production-inventory systems at several locations which are coupled by a common supplier. Demand of customers arrives at each production system according to a Poisson process and is lost if the local inventory is depleted ("lost sales"). To satisfy a customer's demand a server at the production system needs raw material from the associated local inventory. The supplier manufactures raw material to replenish the local inventories, which are controlled by a continuous review base stock policy. The routing of items depends on the on-hand inventory at the locations with the aim to obtain "load balancing". We show that the stationary distribution has a product form of the marginal distributions of the production subsystem and the inventory-replenishment subsystem. For the marginal distribution of the production subsystem we derive an explicit solution and for the marginal distribution of the inventory-replenishment subsystem we derive an explicit solution resp. a recursive algorithm for some special cases.

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