An independent inventory control heuristic for multi-component assemble-to-order systems
International Journal of Operational ResearchPublished 1 January 2010
Bibo Yang, Joseph Geunes
Citations3
SJR quartileQ4
SJR score0.23
SNIP0.46
Generate an AI Snapshot to get a quick, structured summary of this paper.
Study Snapshot
ObjectiveStudy objective
MethodsResearch methodology
PopulationPopulation studied
Sample sizeSample sizes
OutcomesStudy outcomes here
ResultsStudy results comes here
LimitationsResearch study limitations comes here
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
TL;DR
A linear approximation heuristic is developed to minimise expected holding and backlog costs and shows that this heuristic performs well in comparison to a previously proposed heuristic method in the literature called the equal-fractile heuristic.
Abstract
This article investigates an inventory control problem in a single-level multi-component assembly system. In this system, a product with random demand is assembled-to-order from a number of components. The assembler holds inventory at the component levels. We consider a periodic review inventory control system that uses an order-up-to policy for each component. Component safety stock is held to protect against the stock out risk during component replenishment lead times. We develop a linear approximation heuristic to minimise expected holding and backlog costs and show that this heuristic performs well in comparison to a previously proposed heuristic method in the literature called the equal-fractile heuristic.
Keywords
Business, Management and AccountingEngineering
Operations ResearchThe Greatest of a Finite Set of Random Variables
727 Citations1961Charles E. Clark
Operations ResearchOptimal Inventory Policies for Assembly Systems Under Random Demands
326 Citations1989Kaj Rosling
Under an assumption on the initial stock levels that should appear in the long run Long-Run Balance, it is demonstrated that the assembly system can be remodeled as a series system and simple reorder policies are optimal and the computational requirements are drastically reduced.
Handbooks in operations research and management scienceSupply Chain Operations: Assemble-to-Order Systems
220 Citations2003Jing-Sheng Song, Paul Zipkin
This chapter reviews the research on ATO systems, discusses the modeling issues and analytical methods, and summarizes the managerial insights gained from the research.
Operations ResearchOptimal Policy for a Two-Stage Assembly System under Random Demand
136 Citations1985Charles P. Schmidt, Steven Nahmias
This work represents the only exact analysis of an MRP-type assembly system when demand is stochastic and characterized the forms of both the optimal order policy for the components and the optimal assembly policy of the end product for a multiperiod problem of arbitrary, but finite length.
Operations ResearchOrder-Based Cost Optimization in Assemble-to-Order Systems
128 Citations2005Yingdong Lu, Jing-Sheng Song
A cost-minimization model with order-based backorder costs is formulated and it is shown that the solution can be bounded by that of the latter with appropriately imputed parameters, and the optimal base-stock levels can be obtained in a greedy fashion.
European Journal of Operational ResearchJoint demand fulfillment probability in a multi-item inventory system with independent order-up-to policies
121 Citations1998Warren H. Hausman, Hau L. Lee +1 more
This work considers a multi-item inventory system with dependent item demands represented by a multivariate normal distribution and filled under a First-Come-First-Served rule, and obtains the joint demand fulfillment probability within a pre-specified time window.
Mathematics of Operations ResearchOptimal Control of a High-Volume Assemble-to-Order System
80 Citations2006Erica L. Plambeck, Amy R. Ward
It is proved that a myopic discrete-review sequencing policy, which allocates scarce components among orders for different products to minimize instantaneous physical and financial holding costs, is asymptotically optimal.
Operations ResearchNote: A Separation Principle for a Class of Assemble-to-Order Systems with Expediting
43 Citations2007Erica L. Plambeck, Amy R. Ward
It is proved that the multidimensional assemble-to-order control problem separates into single-item inventory control problems, and under an optimal policy for assembly sequencing, the optimal production and expediting policy for each component is independent of all other components.
European Journal of Operational ResearchCoordination of stocking decisions in an assemble-to-order environment
34 Citations2007Xiaohong Zhang, Jihong Ou +1 more
This paper examines an assemble-to-order environment involving a short-life-cycle product that is sold in two different configurations, each requiring a unique component that must be stocked in advance, and investigates how different forms of contract between the assembler and the component suppliers affect coordination of the supply chain.
International Journal of Operational ResearchThe effect on inventory of cooperation in single-vendor, single-buyer systems with quality considerations
14 Citations2007Apichai Ritvirool, William G. Ferrell
This research focuses on modelling a single-vendor, single-buyer purchasing system in which the buyer uses an (Q, r) inventory policy and the vendor determines the production lot size on a make-to-order basis.
Computers & Operations ResearchEfficiency in shortage reduction when using a more expensive common component
11 Citations2003Duncan Κ. H. Fong, Haizhen Fu +1 more
It is found that the relative reduction in the expected units shortage can be substantial when the inventory budget is large unless the cost of the common component is very high and when the budget is small, any potential benefit from employing commonality can be insignificant.
Journal of Clinical Biochemistry and NutritionSafety stocks for assembly systems with fixed production intervals
11 Citations1987Candace Arai Yano, Robert Carlson
EAC and RAC therapies show a comparable efficacy regardless of the CYP2C19 genotype and clarithromycin susceptibility status in Japan, and the eradication rate of the clarityromycin-sensitive strains was significantly higher than that of the resistant strains in both groups.