Establishing Optimal Service Cutoff Times for an Order Fulfillment System
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We develop a steady state sojourn time distribution for orders arriving at an order fulfillment system, given information about the order stream and processing times for workstations. Our work focuses on calculating the sojourn time distribution of an open queuing network with feedback requiring the re-processing of defective orders. With the sojourn time distribution in hand, we can easily calculate the time at which the marginal revenue for an order equals the marginal cost, which then establishes the cutoff time having the highest profit for the firm. We show how an order fulfillment firm might use such an approximation to establish a profit-maximizing cutoff time for promised, premium shipping.
Abstract
We develop a steady state sojourn time distribution for orders arriving at an order fulfillment system, given information about the order stream and processing times for workstations. Our work focuses on calculating the sojourn time distribution of an open queuing network with feedback requiring the re-processing of defective orders. With the sojourn time distribution in hand, we can easily calculate the time at which the marginal revenue for an order equals the marginal cost, which then establishes the cutoff time having the highest profit for the firm. We show how an order fulfillment firm might use such an approximation to establish a profit-maximizing cutoff time for promised, premium shipping.
참고문헌 (28)
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