Article ID: | iaor1997564 |
Country: | United Kingdom |
Volume: | 24 |
Issue: | 2 |
Start Page Number: | 195 |
End Page Number: | 203 |
Publication Date: | Apr 1996 |
Journal: | OMEGA |
Authors: | Papadopoulos H.T. |
Keywords: | queues: applications, performance |
In many companies, the field service (FS) department plays an important role, contributing up to 40% to the company’s total revenue. FS managers have to cope with conflicting objectives: (a) to maintain a high level of customer service and (b) to keep the spares inventory level as low as possible. Therefore, they need tools to analyse the impact of their decisions on customer service and inventory cost. Such a tool is presented in this paper. The author has developed a closed queueing network model, similar to one due to Waller, incorporating priority classes of customers via the application of the priority mean value analysis algorithm, developed by Shalev-Oren et al. This model has been applied to the FS organization of the Greek subsidiary of a multinational computer company, and it has proved to be very efficient from the computational point of view, thus constituting a powerful tool for the FS managers.