IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v33y2005i6p472-482.html
   My bibliography  Save this article

The impact of component commonality in an assemble-to-order environment under supply and demand uncertainty

Author

Listed:
  • Mohebbi, E.
  • Choobineh, F.

Abstract

A material requirements planning simulator with a two-level bill-of-material is used to study the impact of introducing component commonality into an assemble-to-order environment when demand is subject to random variations, and component procurement orders experience random delays. By using simulated data, our ANOVA results show that component commonality significantly interacts with existence of demand and supply chain uncertainties, and benefits of component commonality are most pronounced when both uncertainties exist.

Suggested Citation

  • Mohebbi, E. & Choobineh, F., 2005. "The impact of component commonality in an assemble-to-order environment under supply and demand uncertainty," Omega, Elsevier, vol. 33(6), pages 472-482, December.
    • Handle: RePEc:eee:jomega:v:33:y:2005:i:6:p:472-482
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(04)00105-7
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Feng Cheng & Markus Ettl & Grace Lin & David D. Yao, 2002. "Inventory-Service Optimization in Configure-to-Order Systems," Manufacturing & Service Operations Management, INFORMS, vol. 4(2), pages 114-132, December.
    2. Ma, Shihua & Wang, Wei & Liu, Liming, 2002. "Commonality and postponement in multistage assembly systems," European Journal of Operational Research, Elsevier, vol. 142(3), pages 523-538, November.
    3. David A. Collier, 1982. "Aggregate Safety Stock Levels and Component Part Commonality," Management Science, INFORMS, vol. 28(11), pages 1296-1303, November.
    4. Jing-Sheng Song & David D. Yao, 2002. "Performance Analysis and Optimization of Assemble-to-Order Systems with Random Lead Times," Operations Research, INFORMS, vol. 50(5), pages 889-903, October.
    5. T. S. Lee & Everett E. Adam, Jr., 1986. "Forecasting Error Evaluation in Material Requirements Planning (MRP) Production-Inventory Systems," Management Science, INFORMS, vol. 32(9), pages 1186-1205, September.
    6. Kenneth R. Baker & Michael J. Magazine & Henry L. W. Nuttle, 1986. "The Effect of Commonality on Safety Stock in a Simple Inventory Model," Management Science, INFORMS, vol. 32(8), pages 982-988, August.
    7. Yigal Gerchak & Michael J. Magazine & A. Bruce Gamble, 1988. "Component Commonality with Service Level Requirements," Management Science, INFORMS, vol. 34(6), pages 753-760, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yeu-Shiang Huang & Hau-Wen Lo & Jyh-Wen Ho, 2021. "Effects of component commonality and perishability on inventory control in assemble-to-order systems," Operational Research, Springer, vol. 21(1), pages 205-229, March.
    2. Kai Huang, 2014. "Benchmarking non-first-come-first-served component allocation in an assemble-to-order system," Annals of Operations Research, Springer, vol. 223(1), pages 217-237, December.
    3. Hong, Yoo Suk & Huh, Woonghee Tim & Kang, Changmuk, 2017. "Sourcing assemble-to-order inventories under supplier risk uncertainty," Omega, Elsevier, vol. 66(PA), pages 1-14.
    4. Atan, Zümbül & Ahmadi, Taher & Stegehuis, Clara & Kok, Ton de & Adan, Ivo, 2017. "Assemble-to-order systems: A review," European Journal of Operational Research, Elsevier, vol. 261(3), pages 866-879.
    5. ElHafsi, Mohsen, 2009. "Optimal integrated production and inventory control of an assemble-to-order system with multiple non-unitary demand classes," European Journal of Operational Research, Elsevier, vol. 194(1), pages 127-142, April.
    6. Tunc, Huseyin & Kilic, Onur A. & Tarim, S. Armagan & Eksioglu, Burak, 2011. "The cost of using stationary inventory policies when demand is non-stationary," Omega, Elsevier, vol. 39(4), pages 410-415, August.
    7. Guan, Xu & Ma, Shihua & Yin, Zhe, 2015. "The impact of hybrid push–pull contract in a decentralized assembly system," Omega, Elsevier, vol. 50(C), pages 70-81.
    8. Battini, Daria & Faccio, Maurizio & Persona, Alessandro & Sgarbossa, Fabio, 2009. "Design of the optimal feeding policy in an assembly system," International Journal of Production Economics, Elsevier, vol. 121(1), pages 233-254, September.
    9. Wenyuan Wang & Daniel Y. Mo & Yue Wang & Mitchell M. Tseng, 2019. "Assessing the cost structure of component reuse in a product family for remanufacturing," Journal of Intelligent Manufacturing, Springer, vol. 30(2), pages 575-587, February.
    10. 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.
    11. Mohebbi, E. & Choobineh, F. & Pattanayak, A., 2007. "Capacity-driven vs. demand-driven material procurement systems," International Journal of Production Economics, Elsevier, vol. 107(2), pages 451-466, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jing-Sheng Song & Yao Zhao, 2009. "The Value of Component Commonality in a Dynamic Inventory System with Lead Times," Manufacturing & Service Operations Management, INFORMS, vol. 11(3), pages 493-508, March.
    2. Susan H. Xu & Zhaolin Li, 2007. "Managing a Single-Product Assemble-to-Order System with Technology Innovations," Management Science, INFORMS, vol. 53(9), pages 1467-1485, September.
    3. Jans, Raf & Degraeve, Zeger & Schepens, Luc, 2008. "Analysis of an industrial component commonality problem," European Journal of Operational Research, Elsevier, vol. 186(2), pages 801-811, April.
    4. Anand Paul & Asoo J. Vakharia, 2006. "Requirements planning for modular products," Naval Research Logistics (NRL), John Wiley & Sons, vol. 53(5), pages 418-431, August.
    5. Hsieh, Ying-Jiun, 2011. "Demand switching criteria for multiple products: An inventory cost analysis," Omega, Elsevier, vol. 39(2), pages 130-137, April.
    6. Hillier, Mark S., 2002. "Using commonality as backup safety stock," European Journal of Operational Research, Elsevier, vol. 136(2), pages 353-365, January.
    7. Jeet, Vishv & Kutanoglu, Erhan, 2018. "Part commonality effects on integrated network design and inventory models for low-demand service parts logistics systems," International Journal of Production Economics, Elsevier, vol. 206(C), pages 46-58.
    8. Antoine Deza & Kai Huang & Hongfeng Liang & Xiao Jiao Wang, 2018. "On component commonality for periodic review assemble-to-order systems," Annals of Operations Research, Springer, vol. 265(1), pages 29-46, June.
    9. Albert Y. Ha, 2000. "Stock Rationing in an M/E k /1 Make-to-Stock Queue," Management Science, INFORMS, vol. 46(1), pages 77-87, January.
    10. Ma, Shihua & Wang, Wei & Liu, Liming, 2002. "Commonality and postponement in multistage assembly systems," European Journal of Operational Research, Elsevier, vol. 142(3), pages 523-538, November.
    11. Eva Labro, 2004. "The Cost Effects of Component Commonality: A Literature Review Through a Management-Accounting Lens," Manufacturing & Service Operations Management, INFORMS, vol. 6(4), pages 358-367, June.
    12. Narendra Agrawal & Morris A. Cohen, 2001. "Optimal material control in an assembly system with component commonality," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(5), pages 409-429, August.
    13. Ulrich W. Thonemann & Margaret L. Brandeau, 2000. "Optimal Commonality in Component Design," Operations Research, INFORMS, vol. 48(1), pages 1-19, February.
    14. Zhang, Xinyan & Huang, George Q., 2010. "Game-theoretic approach to simultaneous configuration of platform products and supply chains with one manufacturing firm and multiple cooperative suppliers," International Journal of Production Economics, Elsevier, vol. 124(1), pages 121-136, March.
    15. Betts, John M. & Johnston, Robert B., 2005. "Just-in-time component replenishment decisions for assemble-to-order manufacturing under capital constraint and stochastic demand," International Journal of Production Economics, Elsevier, vol. 95(1), pages 51-70, January.
    16. Droge, Cornelia & Vickery, Shawnee K. & Jacobs, Mark A., 2012. "Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study," International Journal of Production Economics, Elsevier, vol. 137(2), pages 250-262.
    17. Mark S. Hillier, 1999. "Product commonality in multiple‐period, make‐to‐stock systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(6), pages 737-751, September.
    18. Jiri Chod & David Pyke & Nils Rudi, 2010. "The Value of Flexibility in Make-to-Order Systems: The Effect of Demand Correlation," Operations Research, INFORMS, vol. 58(4-part-1), pages 834-848, August.
    19. Mustafa K. Doğru & Martin I. Reiman & Qiong Wang, 2010. "A Stochastic Programming Based Inventory Policy for Assemble-to-Order Systems with Application to the W Model," Operations Research, INFORMS, vol. 58(4-part-1), pages 849-864, August.
    20. Jan A. Van Mieghem, 2004. "Note--Commonality Strategies: Value Drivers and Equivalence with Flexible Capacity and Inventory Substitution," Management Science, INFORMS, vol. 50(3), pages 419-424, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:33:y:2005:i:6:p:472-482. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.