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Two-product make-to-stock system: strategic joining and optimal inventory levels

Year: 2026
Type: article
Abstract: This paper analyzes a two-product make-to-stock queueing system where a single production facility serves two customer classes with independent Poisson arrivals. Customers make strategic join-or-balk decisions without observing current inventory levels. The analysis establishes the existence and uniqueness of Nash equilibria in customer joining strategies for various inventory scenarios. Optimal base-stock levels are characterized from both profit-maximizing and welfare-maximizing perspectives, with closed-form expressions for key performance measures.
Institution: Leiden University
Language: English
Open Access status: hybrid
Estimated APC paid: $3,090
OpenAlex ID: W7160833327
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Cites: 25
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