We derive efficient and highly accurate approximations for the customer waiting-time distributions experienced in stochastic economic lot scheduling systems (SELSPs) that are governed by general base-stock policies under a cyclic or more general periodic item sequence. SELSPs involve settings where several items need to be produced in a common facility with limited capacity, under significant uncertainty regarding demands, unit production times, setup times, or combinations thereof. Under a base-stock policy one continues production of a given item until a specific target level is reached; the different items are produced in a given periodic sequence, possibly with idle times inserted between the completion of an item's production batch and the setup of the next item. We also demonstrate how base-stock levels can be specified efficiently to guarantee any prescribed fill rate within a specific service window or distribution of service windows.

Awi Federgruen and Ziv Katalan
Journal Article
Publication Date
Naval Research Logistics

Full Citation

Federgruen, Awi and Ziv Katalan
. “Customer waiting-time distributions under base-stock policies in single-facility multi-item production systems.”
Naval Research Logistics
, (January 01, 1996):