We explore the relationship between the (S−1,S) inventory model and three well-known queueing models: the Erlang loss system, the machine-repair model and a two-node Jackson network. Exploiting this relationship allows us to obtain key performance measures of the (S−1,S) model, like the so-called virtual outdating time, the number of items on the shelf in steady state, the long-run rate of unsatisfied demands and the distribution of the empty shelf period.
Bibliographical noteFunding Information:
The authors gratefully acknowledge contributions from Marko Boon and Geert-Jan van Houtum. The research of Onno Boxma was partly funded by the NWO Gravitation Programme NETWORKS, Grant Number 024.002.003 .
- (S−1, S) inventory model
- Erlang loss system
- Jackson network
- Machine-repair model
- Virtual outdating time
ASJC Scopus subject areas
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics