Publication: The influence of demand variability on the performance of a make-to-stock queue
Program
KU-Authors
KU Authors
Co-Authors
Jemai, Z
Advisor
Publication Date
Language
English
Type
Journal Title
Journal ISSN
Volume Title
Abstract
Variability, in general, has a deteriorating effect on the performance of stochastic inventory systems. In particular, previous results indicate that demand variability causes a performance degradation in terms of inventory related costs when production capacity is unlimited. In order to investigate the effects of demand variability in capacitated production settings, we analyze a make-to-stock queue with general demand arrival times operated according to a basestock policy. We show that when demand inter-arrival distributions are ordered in a stochastic sense, increased arrival time variability indeed leads to an augmentation of optimal base-stock levels and to a corresponding increase in optimal inventory related costs. We quantify these effects through several numerical examples.
Description
Source:
European Journal Of Operational Research
Publisher:
Elsevier Science Bv
Keywords:
Subject
Management, Operations Research, Management Science