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Supply management in assembly systems

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  • Chengbin Chu
  • Jean‐Marie Proth
  • Xiaolan Xie

Abstract

We consider the case when n components are needed to assemble a given product. Components are provided by suppliers, and the period between the order time and the time a component is available (i.e., the lead time) is a random variable with a known distribution. The due date for the assembled product is also known. The costs to be taken into account are the inventory costs of the components and the backlogging cost of the assembled product. We propose an iterative algorithm which leads to the optimal order instants of the components. © 1993 John Wiley & Sons, Inc.

Suggested Citation

  • Chengbin Chu & Jean‐Marie Proth & Xiaolan Xie, 1993. "Supply management in assembly systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 40(7), pages 933-949, December.
    • Handle: RePEc:wly:navres:v:40:y:1993:i:7:p:933-949
    DOI: 10.1002/1520-6750(199312)40:73.0.CO;2-8
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    References listed on IDEAS

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    1. Ranga V. Ramasesh & J. Keith Ord & Jack C. Hayya & Andrew Pan, 1991. "Sole Versus Dual Sourcing in Stochastic Lead-Time (s, Q) Inventory Models," Management Science, INFORMS, vol. 37(4), pages 428-443, April.
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    Cited by:

    1. Faicel Hnaien & Alexandre Dolgui & Desheng Dash Wu, 2016. "Single-period inventory model for one-level assembly system with stochastic lead times and demand," International Journal of Production Research, Taylor & Francis Journals, vol. 54(1), pages 186-203, January.
    2. 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.
    3. Shi Chen & Hau Lee, 2017. "Incentive Alignment and Coordination of Project Supply Chains," Management Science, INFORMS, vol. 63(4), pages 1011-1025, April.
    4. Yin, Zhe & Wang, Chen & Yin, Qian, 2018. "Coordinating overseas and local sourcing through a capacitated expediting transportation policy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 258-271.
    5. Vernon Ning Hsu & Chung Yee Lee & Kut C. So, 2007. "Managing components for assemble‐to‐order products with lead‐time‐dependent pricing: The full‐shipment model," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(5), pages 510-523, August.
    6. Ke Fu & Vernon Ning Hsu & Chung-Yee Lee, 2006. "Inventory and Production Decisions for an Assemble-to-Order System with Uncertain Demand and Limited Assembly Capacity," Operations Research, INFORMS, vol. 54(6), pages 1137-1150, December.

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