Equilibrium strategies of customers and optimal inventory levels in a make-to-stock retrial queueing system

Abstract

We examined a retrial make-to-stock system based on a double-ended queue. When the queue length was negative, the inventory system contained only products, and customers were waiting in the retrial queue when the queue length was positive. We developed a model to study the expected cost of the entire system with strategic customers in the observable case and the fully observable case. We also obtained the optimal inventory levels under these two levels of information based on numerical experiments.

Keywords

• make to stock
• retrial queue
• double-ended
• equilibrium strategies
• optimal inventory level