Experimental Results Indicating Lattice-Dependent Policies May Be Optimal for General Assemble-to-Order Systems

Experimental Results Indicating Lattice-Dependent Policies May Be Optimal for General Assemble-To-Order Systems

We consider an assemble-to-order (ATO) system with multiple products, multiple components which may be demanded in different quantities by different products, possible batch ordering of components, random lead times, and lost sales. We model the system as an infinite-horizon Markov decision process under the average cost criterion. A control policy specifies when a batch of components should be...

Performance Evaluation of Lattice-Dependent Base-Stock and Rationing Policies for Assemble-to-Order Systems

Optimal Policies for an Assemble-to-Order N-System

We consider an assemble-to-order (ATO) N-system, in which there are two components and two products. One product requires only component-1, while the other product requires both components. The components are kept in stock and are procured from outside suppliers with fixed leadtimes. The final products are assembled only after customer orders are realized. Using a hybrid approach that combines ...

Optimal Control of Assemble-to-Order Systems

We consider the optimal control of an assemble-to-order (ATO) system with m components, a single end-product, and n customer classes. Demand from each class occurs continuously over time according to a Poisson process. Components are produced in separate production facilities, each with a finite production rate and exponentially distributed production times. Components can be stocked ahead of d...

New Functional Characterizations and Optimal Structural Results for Assemble-to-Order Generalized M -Systems

We consider an assemble-to-order generalized M -system with multiple components and multiple products, batch ordering of components, random lead times, and lost sales. We model the system as an infinite-horizon Markov decision process and seek an optimal control policy, which specifies when a batch of components should be produced and whether an arriving demand for each product should be satisf...