Optimal inventory control policies of a two-stage push–pull production inventory system with lost sales under stochastic production, transportation, and external demand

George Varlas ^[1] ; Michael Vidalis ^[1] ; Stelios Koukoumialos ^[2] ; Alexandros Diamantidis ^[3]
1. [1] University of the Aegean
  
  University of the Aegean
  
  Dimos Lesbos, Grecia
2. [2] University Of Thessaly
  
  University Of Thessaly
  
  Dimos Volos, Grecia
3. [3] Aristotle University of Thessaloniki
  
  Aristotle University of Thessaloniki
  
  Dimos Thessaloniki, Grecia
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Localización: Top, ISSN-e 1863-8279, ISSN 1134-5764, Vol. 29, Nº. 3, 2021, págs. 799-832
Idioma: inglés
DOI: 10.1007/s11750-021-00595-0
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Resumen
- An analytical model based on Markov processes is proposed for the analysis of a linear, horizontally integrated, two stages, push–pull inventory system. Uncertainty about both supply and demand is taken into consideration. Exponentially distributed lead times, compound Poisson external demand and lost sales are assumed. An algorithm that creates the infinitesimal generator matrix of the system is developed and an exact numerical solution of the system performance measures is also provided. The proposed model can be either used to evaluate what if scenarios exploring the behavior of the system or to optimize performance measures of the considered system. As an example, the model is used to analyze and get insights of the behavior of a supply–demand balanced system.