Queuing-Inventory System with Catastrophes in the Warehouse: Case Rare Catastrophes

A model of a single-server queuing-inventory system (QIS) with catastrophes and a finite waiting room for consumer customers (c-customers) has been developed. When a catastrophe occurs, all inventory in the systems warehouse is destroyed, but c-customers in the system are still waiting for restocking. In addition to c-customers, negative customers (n-customers) are also taken into account, which displaces one c-customers (if any). The policy (?, ?) is used to replenish stocks. If upon arrival of the c-customer the inventory level is zero, then according to Bernoulli’s scheme this c-customer is either lost or joining the queue. The mathematical model of the studied QIS is constructed in the form of a two-dimensional continuous-time Markov chain (2D CTMC). Exact and approximate methods for calculating the steady-state probabilities of constructed 2D CTMCs are developed and closed-form expressions are derived for calculating the performance measures. The results of numerical experiments are presented, demonstrating the high accuracy of the developed approximate formulas, as well as the behavior of performance indicators depending on the reorder point. In addition, an optimization problem is solved to obtain the optimal reorder point to minimize the expected total cost.