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Stability of queueing-inventory systems with customers of different priorities

Author

Listed:
  • Sonja Otten

    (Hamburg University of Technology)

  • Hans Daduna

    (Universität Hamburg)

Abstract

We study a production-inventory system with two customer classes with different priorities which are admitted to the system following a flexible admission control scheme. The inventory management is according to a base stock policy and arriving demand which finds the inventory depleted is lost (lost sales). We analyse the global balance equations of the associated Markov process and derive structural properties of the steady state distribution which provide insights into the equilibrium behaviour of the system. We derive a sufficient condition for ergodicity using the Foster-Lyapunov stability criterion. For a special case we show that the condition is necessary as well.

Suggested Citation

  • Sonja Otten & Hans Daduna, 2023. "Stability of queueing-inventory systems with customers of different priorities," Annals of Operations Research, Springer, vol. 331(2), pages 963-983, December.
    • Handle: RePEc:spr:annopr:v:331:y:2023:i:2:d:10.1007_s10479-022-05140-1
    DOI: 10.1007/s10479-022-05140-1
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    References listed on IDEAS

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