Composite Model Solution between Inventory with Continuous Review and Waiting Queues with Practical Application

Abstract

Production companies fall under two opposite types of pressures, as they seek to store large quantities of products to cover the demand and to obtain customers satisfaction to increase profits, from one side, and to store the least possible quantity of products to reduce costs and reduce customers’ waiting time from the other side. An inventory composite model with continuous review based on the queue type (M/M/1: FCFS/∞/∞) is used. Studying the waiting queue by (WINQSB) program, it was found that the system occupancy rate was (97.9%) and the unoccupied rate was (2.09) and by solving the composite model using (LINGO Software), it was found that the costs of mineral water bottles of the three sizes produced are different, and for the purpose of reducing costs of the products an algorithms should be used to solve the composite model and compare its results with the results of the traditional method for choosing the lowest costs through the model.