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Author:Iyer, A.V.
Jain, A.
Title:The logistics impact of a mixture of order-streams in a manufacturer-retailer system
Journal:Management Science
2003 : JUL, VOL. 49:7, p. 890-906
Index terms:Manufacturing
Queuing theory
Retailing
Stochastic processes
Language:eng
Abstract:A supply chain with two retail warehouses that place replenishment orders with a common manufacturing capacity is modeled in this article. The two retailers differ in the variability of their order-streams. The order-stream from one retail warehouse is modeled as a Poisson process and from the other as a hyperexponential renewal process. Each retail warehouse uses a base-stock policy to place replenishment orders with the manufacturer. The manufacturer is modeled as the first-come-first-serve, single exponential server queue. The supply-side impact of this mixture of order-streams received by the manufacturer is analyzed on both retailers.
SCIMA record nr: 254616
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