Strategic Behavior and Optimal Inventory Level in a Make-to-Stock Queueing System with Retrial Customers

Abstract

In this article, we consider a make-to-stock queueing system with retrial customers. Upon their arrival, customers make a decision to either join the system or not based on a reward–cost function. If customers join the retrial queue, they become repeat customers. Each repeat customer repeats their demand after an exponential amount of time until they have been successfully served. We explore the equilibrium strategies of customers in both the almost observable and unobservable cases. Furthermore, we also analyze the expected costs of the entire system based on the customers’ behavior in these two cases. Additionally, we determine the optimal inventory levels in both cases through numerical experiments.

Keywords

• make-to stock
• queueing system
• equilibrium strategies
• expected cost