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Approximation methods for the analysis of a multicomponent, multiproduct assemble‐to‐order system

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  • Ke Fu
  • Vernon N. Hsu
  • Chung‐Yee Lee

Abstract

In this article, we consider the performance evaluation of a multicomponent, multiproduct assemble‐to‐order (ATO) system. Each component is managed independently using a base‐stock policy at a supply facility with limited production capacity and an infinite buffer. The arrivals of demands follow a multivariate Poisson process and unfilled demands are backlogged. Because exact analysis of the proposed system is not feasible, we propose two approximation methods which provide upper and lower bounds for various performance measures such as fill rate, average waiting time, and average number of backorders of the proposed system. Our computational experiments demonstrate the effectiveness of the two approximation methods under various system settings. © 2011 Wiley Periodicals, Inc. Naval Research Logistics, 2011

Suggested Citation

  • Ke Fu & Vernon N. Hsu & Chung‐Yee Lee, 2011. "Approximation methods for the analysis of a multicomponent, multiproduct assemble‐to‐order system," Naval Research Logistics (NRL), John Wiley & Sons, vol. 58(7), pages 685-704, October.
    • Handle: RePEc:wly:navres:v:58:y:2011:i:7:p:685-704
    DOI: 10.1002/nav.20479
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    References listed on IDEAS

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    3. Jing-Sheng Song & Susan H. Xu & Bin Liu, 1999. "Order-Fulfillment Performance Measures in an Assemble-to-Order System with Stochastic Leadtimes," Operations Research, INFORMS, vol. 47(1), pages 131-149, February.
    4. Savas Dayanik & Jing-Sheng Song & Susan H. Xu, 2003. "The Effectiveness of Several Performance Bounds for Capacitated Production, Partial-Order-Service, Assemble-to-Order Systems," Manufacturing & Service Operations Management, INFORMS, vol. 5(3), pages 230-251, December.
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    Cited by:

    1. ElHafsi, Mohsen & Fang, Jianxin & Hamouda, Essia, 2020. "A novel decomposition-based method for solving general-product structure assemble-to-order systems," European Journal of Operational Research, Elsevier, vol. 286(1), pages 233-249.
    2. Mohammed Hichame Benbitour & Evren Sahin & Yves Dallery, 2019. "The use of rush deliveries in periodic review assemble-to-order systems," Post-Print hal-01997380, HAL.

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