Abstract
In this chapter, we consider the application of the Markovian queueing systems discussed in Chap. 2 in modeling manufacturing systems and re-manufacturing systems. We adopt Hedging Point Production (HPP) policy as a production control policy. We note that in a queueing system, there are servers, customers, and waiting spaces. To model a make-to-order manufacturing system by a queueing system, one may regard a server as a machine. The customers can be regarded as the inventory of product or the jobs to be processed respectively; see for instance Buzacott and Shanthikumar [34]. In a manufacturing system, a certain amount of inventory (called the hedging point) is kept to cope with the fluctuation of demand and therefore production control is necessary. The system will stop production when this level of inventory is attained.
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Ching, WK., Huang, X., Ng, M.K., Siu, TK. (2013). Manufacturing and Re-manufacturing Systems. In: Markov Chains. International Series in Operations Research & Management Science, vol 189. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-6312-2_3
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