Association Journal of CSIAM
Supervised by Ministry of Education of PRC
Sponsored by Xi'an Jiaotong University
ISSN 1005-3085  CN 61-1269/O1

Chinese Journal of Engineering Mathematics ›› 2025, Vol. 42 ›› Issue (5): 806-822.doi: 10.3969/j.issn.1005-3085.2025.05.002

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Performance Analysis and Optimal Control of the Inventory Strategy of Two-stage Production-service Inventory System

YUE Dequan,  CHI Yanwei,  WEI Yining   

  1. School of Science, Yanshan University, Qinhuangdao 066004
  • Received:2023-02-27 Accepted:2024-06-23 Online:2025-10-15 Published:2025-12-15
  • Supported by:
    The National Natural Science Foundation of China (71971189); the Science and Technology Project of Higher Education Institutions of Hebei Education Department (ZD2018042).

Abstract:

This paper studies a two-stage production-service inventory system which is composed of a  production center and a distribution center. A new production strategy, $(rQ+m,KQ)$ production strategy, is proposed for the production center. The distribution center adopts $(s,Q)$ inventory replenishment strategy. Customers arrive according to a Poisson process, and the lead time, the service time and the production time are assumed to be exponentially distributed. Firstly, the continuous-time Markov model is established, and the steady-state condition of the system is obtained by using the theory of quasi-birth-and-death process. Secondly, by solving the steady-state probability distribution of the modified system model, some steady-state probability distribution of the system is obtained. Then formula of computing of the steady-state performance indexes of the system are given. Finally, by using genetic algorithm, the optimal inventory strategies and average cost of the system that aim to minimize the average cost of the system are calculated. The four production inventory strategies of the system are compared by numerical examples. The results show that under certain conditions, the average cost of the system is the lowest when the production center adopts the $(m,KQ)$ strategy.

Key words: production inventory system, queueing system, $(s, Q)$ strategy, quasi-birth-and-death process, lost sales, inventory control

CLC Number: