Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309538 
Authors: 
Year of Publication: 
2022
Citation: 
[Journal:] Annals of Operations Research [ISSN:] 1572-9338 [Volume:] 331 [Issue:] 2 [Publisher:] Springer US [Place:] New York, NY [Year:] 2022 [Pages:] 807-837
Publisher: 
Springer US, New York, NY
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 deduce an explicit solution or a recursive algorithm for some special cases.
Subjects: 
Queueing networks
Inventory control
Base stock policy
Product-form steady state
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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