Conference 2021
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Dennis Schol (Eindhoven UT) - A newsvendor problem with many suppliers
Supervisors: Maria Vlasiou and Bert Zwart
Recorded full presentation

A typical property of high-tech manufacturing is that a large number of suppliers are involved, and are specialized in producing and delivering a very specific component of the final product. We aim to model the delays in the emerging complex supply chain. In such a supply chain, the delay of the manufacturer is determined by the slowest supplier. This supply chain can be modeled by a fork-join queueing system. First of all, we give a convergence result of the maximum of N queue lengths as N goes to infinity, the scaled maximum queue length converges to a normally distributed random variable. Secondly, we analyze a newsvendor problem. Since it is possible that some suppliers already have completed their components, and others have not, the fast suppliers have to wait for the slow suppliers, but storing these completed components costs money. Furthermore, suppliers want to have a base stock ready in order to cover delays. Hence, our aim is to find the optimal base stock level for each supplier. Moreover, since the delays of suppliers depend on their capacity, we also optimize over the capacity of each supplier.