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Planned lead times optimization for multi-level assembly systems under uncertainties

Author

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  • Ben-Ammar, Oussama
  • Dolgui, Alexandre
  • Wu, Desheng Dash

Abstract

Planned lead times are crucial parameters in management of supply networks that continue to be more and more extended with multiple levels of inventory of components and uncertainties. The object of this study is the problem of determining planned lead times in multi-level assembly systems with stochastic lead times of different partners of supply chains. A general probabilistic model with a recursive procedure to calculate all the necessary distributions of probability is proposed. A Branch and Bound algorithm is developed for this model to determine planned order release dates for components at the last level of a BOM which minimize the sum of inventory holding and backlogging costs. Experimental results show the behavior of the proposed model and optimisation algorithm for different numbers of components at the last level of the BOM and for different numbers of levels and values of holding and backlogging costs. The model and algorithm can be used for assembly contracting in an assembly to order environment under lead time uncertainty.

Suggested Citation

  • Ben-Ammar, Oussama & Dolgui, Alexandre & Wu, Desheng Dash, 2018. "Planned lead times optimization for multi-level assembly systems under uncertainties," Omega, Elsevier, vol. 78(C), pages 39-56.
    • Handle: RePEc:eee:jomega:v:78:y:2018:i:c:p:39-56
    DOI: 10.1016/j.omega.2017.11.004
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    References listed on IDEAS

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    3. Ben-Ammar, Oussama & Bettayeb, Belgacem & Dolgui, Alexandre, 2019. "Optimization of multi-period supply planning under stochastic lead times and a dynamic demand," International Journal of Production Economics, Elsevier, vol. 218(C), pages 106-117.
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    6. Liu, Liming & Xu, He & Zhu, Stuart X., 2020. "Push verse pull: Inventory-leadtime tradeoff for managing system variability," European Journal of Operational Research, Elsevier, vol. 287(1), pages 119-132.
    7. Slama, Ilhem & Ben-Ammar, Oussama & Thevenin, Simon & Dolgui, Alexandre & Masmoudi, Faouzi, 2022. "Stochastic program for disassembly lot-sizing under uncertain component refurbishing lead times," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1183-1198.

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