Two-Product Make-to-Stock System: Strategic Joining and Optimal Inventory Levels
Optimization and Control
2026-01-14 v1
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.
Keywords
Cite
@article{arxiv.2601.08426,
title = {Two-Product Make-to-Stock System: Strategic Joining and Optimal Inventory Levels},
author = {Odysseas Kanavetas and Ekaterina Kosarevskaia},
journal= {arXiv preprint arXiv:2601.08426},
year = {2026}
}