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Analysis of Two Echelon Joint Queueing-Production System by Considering Service Value for the Costumer

Ahmadi, Shahrzad | 2012

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 43059 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Haji, Alireza
  7. Abstract:
  8. Queuing systems and their optimization have always been an important concern of every society. It has been a long time that people understand that with quantifying the queues they are standing on, they can save great amount of money and time. Because of that fact, they have been studying these systems, and reached to the interesting conclusions. These researches have shown that there exist a couple of equilibriums in every queuing system, such as: speed-price and speed-quality equilibriums.Knowing these equilibriums along with modeling them will help us optimize queues. The importance of this optimization is its incredible effect on cost reduction in economical and social queues. In many services, the quality or value provided by the service increases with the time the service-provider spends with the customer. However, longer service times also result in longer waits for customers.
    Our model is two-echelon system including a vendor and a service-provider. Customer arrives at the market according to Poisson process. Vendor will immediately send the order to the provider. Service-provider works as M/M/1 system and the transportation time between service-provider and vendor is deterministic and constant. Also expected value for product and waiting cost per time unit of customers are various and uniformly distributed. We demonstrate the optimal speed-quality equilibrium of production system, and then we discuss the optimal production policy for various population structures with different expected value and waiting cost parameters.Finally, some strategies for implementing a system with more benefit will be presented, according to the parameters of the model.Our results have shown that customer intensity and the nature of society and the industry have an important effect on price, service providing rate, demand, queue congestion and service provider revenue
  9. Keywords:
  10. Queueing System ; Optimization ; Strategic Customer ; Speed-Quality Equilibrium ; Costomer Expected Value ; Costomer Intensity ; Waiting Cost

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