Publication: The influence of demand variability on the performance of a make-to-stock queue
Program
KU-Authors
KU Authors
Co-Authors
Jemai, Z
Publication Date
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Type
Embargo Status
Journal Title
Journal ISSN
Volume Title
Alternative 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.
Source
Publisher
Elsevier Science Bv
Subject
Management, Operations Research, Management Science
Citation
Has Part
Source
European Journal Of Operational Research
Book Series Title
Edition
DOI
10.1016/j.ejor.2003.06.042