Admission Control Problem in a Service Facility with Inventory Management
Abstract
In this article, we address the problem of optimally controlling the admission of customers to a service facility system with inventory and two types of customer viz. ordinary and priority customers, compete for service. We consider a service facility system having finite waiting space and Poisson arrivals. For the given values of maximum inventory and reorder level s, the lead times are assumed to be exponentially distributed. We determine the optimal order quantity or reorder level, so that the long run expected cost is minimized. We prove the existence of a stationary optimal policy and solve it by employing LP technique. Numerical examples for different instances are provided to get insight into the system behavior.