Publication

Abstract : A supply chain model with one production centre and one distribution centre is consid- ered. Arrival of Customers to the distribution centre follows Poisson process. Service time follows exponential distribution. The maximum stock at the distribution centre is limited to S(= s + Q). When the stock of the distribution centre reduces to s, it orders Q items from the production centre. If the production centre has the required amount, the items are supplied to the distribution centre. The lead time follows exponential distribution. At the time of receiving the order if the production centre has less than Q items on stock then an additional time for inventory to accumulate to Q by production is needed. Production time for each unit is exponentially distributed. The production centre adopts an (rQ, KQ)-policy where 0 < r < K < ∞. When the inventory level depletes to rQ the production process is immediately switched on. The production process is kept in the on mode until the inventory level becomes KQ. We assume that no customers join the queue when the inventory level in the distribution centre is zero and such demands are considered as lost.When the inventory level in the distribution centre is zero and the inventory level in the production centre is not more than Q − 1 units, customers in the waiting space become impatient and may leave the system without getting service after an exponentially distributed amount of waiting time. Several system performance measures are obtained and cost function is constructed.