Modeling and Analysis of a Basic Production-Service System with 2-Class Customers

Abstract

Abstract: In this paper, a basic production-service system with 2-class customers is discussed. A Markov model is constructed to describe the system. Based on the model, the steady-state distribution is calculated. A searching algorithm is proposed to find the optimal basic stock level and service capacity threshold. By numerical analysis, it shows that, by improving basic stock level of the inventory, the queue length of high priority customer is dramatically decreased. Also, in order to get higher profit, additional service capacity should be open as early as possible, though the additional service cost is relatively high. To get more net profit, when customer arrival rate is greater than the production and service rate, the system should limit the arrival rate of high priority customer, or otherwise limit the arrival rate of low priority customer.

Key words: production-service system, Markov chain, impatient customer, priority

Wang Tong-yi1, Jiang Zhi-bin2,3, Wang Kang-zhou1,3. Modeling and Analysis of a Basic Production-Service System with 2-Class Customers[J]. Industrial Engineering Journal , 2013, 16(5): 62-67.

References

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