A Queuing-inventory Model in Multiproduct Supply Chains

Abstract

we consider a supply chain that includes a manufacture which produces more than one product that are demanded by several retailers. After production, each all type of products is hold in separated warehouses. Each warehouse has different holding cost and each product has a different backorder cost. We formulate a linear cost function to aggregate all the costs of the holding, back ordering and ordering. The manufacture incurs a setup time whenever it switches from producing one product type to another and it has a finite production rate and stochastic production times. The manufacturer is modeled as a FCFS, GI/G/1 queue. In order to mitigate the effect of setups, products are produced in batches. Customers' arriving orders are sent to warehouses from retailers of each product and by sending production authorization (PA) to manufacturing plants. Moreover, we extend the proposed model in order to analyze the logistics process to three-echelon inventory model. At last, several numerical examples of manufacturing supply chain network are given in order to analysis performance evaluation.