On Base Stock Policies for Make to Ordermake to Stock Program

Cover 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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