On Base Stock Policies for Make to Ordermake to Stock Program
On Base Stock Policies for Make to Ordermake to Stock Program
Vin Nguyen
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Next, define d n = y]nk and Pk = —- (3) The fill rate of type k jobs, defined to be the fraction of type k orders that are filled from inventory, is denoted by Q^t- The number of type k jobs in the workstation at time ( is denoted by Qok{t), which one can interpret as type k work-in-process (WIP) inventory. The number of items in type k finished-goods inventory. A; = l, ... , d, is denoted by Qk{i) and satisfies the relationship Qk{t) = n^ - (5o/t(0- Finally, W{t) is the amoimt of work present ...at the workstation at time t, which includes the remaining processing time of any job in service at that time. Product-Form Solutions It is possible to derive explicit product-form steady-state distributions for this network under the assumptions that (a) each station operates under the FIFO service discipline; (b) all processing and inter-demand times are exponentially distributed; and (c) all product types have the same mean processing time (at the workstation). (See Kelly [12]. ) Under these conditions, it is known that the condition Pr
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