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2019 Stochastic Approach to a Buffer Stock Problem

Abstract: In this study, a buffer stock between two machines which are working at the same speed, is considered. It is assumed that the stock level between two machines alters in the interval 0 , 2α. In the case that only the first machine is broken, the stock level can decrease to zero if repairing time of the first machine is extended. This causes the second machine is required to be halted. After fixing the first machine, the system begins to work again. If the second machine is broken and the first machine is working, then the process proceeds until the stock level reaches the maximum level 2α and then the first machine will be halt compulsory. In order to re-work the system, the repairing of the second machine must be completed. Under these assumptions, the buffer stock level will be stochastically fluctuated in the interval 0 , 2α. Thus, the buffer stock between two machines can be expressed by a stochastic process Y t and it is observed that this process is a random walk with two barriers. Some problems of queuing theory, stock control, reliability, insurance models and risk management can be expressed by random walk and its modifications. In literature, there are several considerable studies (e.g., Aliyev and Khaniyev, Feller, Janseen and Leeuwarden, etc.). In this study, the stationary characteristics of the random walk process Y t which represent the buffer stock level, are investigated. Especially, for all moments of the ergodic distribution of the process Y t, the exact expressions are obtained under the assumption that the random walk Y t generated by bilateral exponential distributed summands. Moreover, the exact and approximate expressions for variance, standard deviation, coefficient of variation, skewness and kurtosis of the process, are obtained. It is also observed that the ergodic distribution of the standardized stochastic process W t = Y t / a weakly converges to a triangular distribution in the interval 0, 2.

International Data Science & Engineering Symposium
IDSES

Zülfiye HANALİOGLU Tahir HANALİOGLU

272 179
Subject Area: Engineering Broadcast Area: International Type: Oral Paper Language: English