On (s, S) inventory system with random lead time and repeateddemands

Abstract

We consider an (s, S) inventory system with random lead time and repeated demands of unsatisfied demands from the orbit. Whenever the inventory level falls to the level s, an order is placed to bring the level to S. The quantity ordered is M = S − s. Demands to the system are served immediately if there is a positive inventory. Otherwise it will go to a pool of unsatisfied customers called orbit. After a random amount of time, that demand is retried for service. We assume a Markovian setup for the time between consecutive arrivals, replenishments, and retrials. We obtained the condition for ergodicity of the system, steady state system size probabilities, expected length of the busy period of the system, expected inventory level, expected number of customers waiting in the orbit, expected waiting times, and so forth. A control problem is studied and some numerical illusrtations are provided.