Control Inventory in Retrial Service Facility System with Two Types of Customers - SMDP

Abstract

In this article, we concentrate on the control of ordering inventory in retrial service facility system with ordering quantity adjusted at the time of replenishment. The arrival of customers (priority and non - priority) to the system is assumed as two independent Poisson streams and service times are assumed to follow an exponential distribution. For the given values of maximum inventory, maximum waiting space, reorder level and lead times, we determine the optimal ordering policy at various instants of time. The system is formulated as a Semi-Markov Decision Process and the optimum inventory control policy to be employed is found using linear programming method. Numerical examples are provided to illustrate the model.