TABLE OF CONTENTS This section extends the production/inventory system studied in Section 12.1 from a single product to multiple ones. The new system again operates under the lost sales discipline.
The extended system is depicted in Figure 12.15. Accordingly, the production facility produces product types 1, 2, and 3, and these are supplied to three distinct incoming customer streams, denoted by types 1, 2, and 3, respectively. The production facility produces batches of products, switching from production of one product type to another, depending on Inventory levels. However, products have priorities in production, with product 1 having the highest priority and product 3 the lowest.
A raw-material storage feeds the production process, and finished units are stored in the warehouse. Customers arrive at the warehouse with product demands, and if a demand cannot be fully satisfied by Inventory on hand, the unsatisfied portion represents lost sales. Each product has its own parameters as per Table 12.1. The following assumptions are made:
There is always sufficient raw material in storage, so the production process never starves.
Processing of each product type is carried out in lots of five units, and finished lots are placed in the warehouse. Lot processing time is deterministic as per Table 12.1.
The production process experiences random failures, which may occur only while the production facility is busy. Times between failures are exponentially distributed with a mean of 200 minutes, while repair times...
