Measurement and optimization of responsiveness in supply chain networks with queueing structures

Abstract

In this paper we consider supply chains with multiple stages of serial or network structure. The supply chains are endogenous in the sense that they involve queues because each order’s lead-time is dependent on the orders already in the system. We define supply chain responsiveness as the probability of fulfilling customer orders within a promised lead-time and study the problems of measuring and optimizing supply chain responsiveness using queueing network models. We first consider a single-server multi-stage serial supply chain and find a closed form expression for the fulfilment time distribution. For the multi-server multi-stage problem, the closed form evaluation of the fulfilment time distribution becomes intractable due to the dependency of the lead-times in different stages. We circumvent this difficulty by proposing a novel FCFS discipline which enables a closed-form analysis. For the multi-server multi-stage Jackson-type supply chain network, to enable analysis, we convert the system into an equivalent single server single stage system with state-dependent rates. For each case, we present detailed numerical examples for both measurement and the optimization of supply chain responsiveness.